16%
6%
27%
51%
Direct effect (breweries)
Indirect effect (suppliers)
Hospitality industry
Retail
5 | Induced effects of the brewing sector
Hospitality sector
The economic impact of breweries on the hospitality
sector is assessed as follows :
Approximately 49% of beer consumption in the
Czech Republic is in the hospitality sector.
This means that 7.4 million hectolitres of beer is
consumed in Czech pubs, restaurants and other
hospitality facilities.
With an average consumer price of 1.30 euro per
litre (incl. 19% VAT) this means consumers spent
approximately 957 million euro (excl. VAT) on beer
in pubs and restaurants.
The average turnover per employee in the Czech
hospitality industry is 36,500 euro a year.
The employment in Czech hospitality sector due
to beer sales is 21,900 jobs.
Retail
The importance of the brewing sector for retail
can be similarly assessed :
Of total Czech beer consumption, 51% is sold in
supermarkets and other retail companies.
With an average consumer price of 0.75 euro
(incl. 19% VAT) per litre, consumer spending on beer
in retail companies is estimated at 575 million euro
(incl. VAT). Total consumer spending excluding VAT
is 479 million euro.
Employees in the retail sector realise an annual
turnover of 202,700 euro each.
Total employment in the Czech retail sector through
beer sales equals 2,400 employees.
Approximately 7,000 people are employed in Czech
breweries in 2010. Employment in supply sectors due
to the production and sale of beer amounted to 11,500
jobs. Approximately 21,900 jobs in the hospitality sector
and 2,400 jobs in the retail sector can be attributed to
the sale of beer. The total employment impact due to
beer production and sales in the Czech Republic was
therefore 42,700 jobs. Compared to 2008, this represents
a decrease of almost 22 percent.
The employment impact of the brewing sector is
presented below:
›
Graph 13.3. / Total employment because of beer : 42,700 jobs
›
Source : Ernst & Young calculation (2011)
(see Annex III for an explanation of the methodology).
6 | Total employment due to beer
The Contribution made by Beer to the European Economy
86