13%
12%
41%
34%
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 9% of all beer consumed in Estonia is
sold by the hospitality sector (on-trade), which means
95,670 hectolitres is sold on-trade.
The average consumer price of beer in Estonian pubs
and restaurants is 4.85 euro per litre (including VAT), so
that total consumer spending on beer in the hospitality
sector is 46.4 million euro (including VAT).
Net consumer spending on beer is thus estimated
at 38.7 million euro (using a 20% VAT rate).
With an average hospitality turnover of 25,451 euro
(excluding VAT) per person, this results in 1,519
hospitality sector jobs attributable to beer sales.
Retail
The importance of the brewing sector for retail
can be similarly assessed :
Approximately 91% of total beer consumption (967,330
hectolitres) in Estonia is beer sold by supermarkets and
other retail outlets.
With an average consumer price of 1.31 euro per
litre (including VAT), total retail consumer spending on
beer is estimated at 127 million euro. Total consumer
spending excluding VAT is thus 106 million euro.
With turnover per employee estimated at 190,000 euro
(excluding VAT), this means 556 people owe their jobs
to retail beer sales.
In 2010, approximately 587 people were employed in the
Estonian breweries. Employment in the supplying sectors
is very important with a total number employed in these
sectors arising from the brewing sector of around 1,816.
Around 1,519 jobs in the hospitality sector and 556 jobs
in the retail sector can be attributed to the sale of beer.
The total employment impact due to beer production and
sales in Estonia is therefore 4,478 jobs. Compared to 2008,
this represents a decrease of 212 jobs.
›
Graph 15.3. / Total employment because of beer : 4,478 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
98