18%
5%
12%
65%
Direct effect (breweries)
Indirect effect (suppliers)
Hospitality industry
Retail
5 | Induced effects of the brewing sector
Hospitality sector
The economic impact of Danish breweries on the
hospitality sector is assessed as follows :
About 23% of all beer consumed in Denmark is sold by
the hospitality sector (on-trade), which means almost
811,000 hectolitres is sold on-trade.
The average consumer price of beer in Danish pubs and
restaurants is estimated at 10.00 euro a litre (including
VAT), so that total consumer spending on beer in the
hospitality sector is 819 million euro (including VAT).
Net consumer spending on beer is thus estimated
at 656 million euro (using a 25% VAT rate).
With an average hospitality turnover of 47,500 euro
(excluding VAT) per person, this results in 13,800
hospitality sector jobs attributable to beer sales.
Retail
The importance of the brewing sector for retail
can be similarly assessed :
Around 77% of total beer consumption (2.8 million
hectolitres) in Denmark is beer sold by supermarkets
and other retail outlets.
With an average consumer price of 1.65 euro per litre
(including VAT), total retail consumer spending on beer
is estimated at 463.1 million euro. Total consumer
spending excluding VAT is thus 370.5 million euro.
With turnover per employee estimated at 312,500 euro
(excluding VAT), this means 1,200 people owe their jobs
to retail beer sales.
Approximately 3,880 people were employed in Danish
breweries in 2010. Employment in supply sectors
due to the production and sale of beer amounted to 2,500
jobs. Around 13,800 jobs in the hospitality sector
and 1,200 jobs in the retail sector can be attributed to
the sale of beer. The total employment impact due to beer
production and sales in Denmark was therefore 21,400
jobs. Compared to 2008, this means a decrease of almost
5000 jobs.
›
Graph 14.3. / Total employment because of beer : 21,400 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
92