PUBLIC HEARING GROWTH POTENTIAL OF THE EUROPEAN BEER INDUSTRY

Transcription

1 PUBLIC HEARING GROWTH POTENTIAL OF THE EUROPEAN BEER INDUSTRY The Spanish beer sector and the on-trade Jacobo Olalla Marañón Director Cerveceros de España Prague, 5 th September,

2 SPANISH BEER SECTOR 2

3 Spanish Beer Sector: 4th biggest beer producer in Europe worlwidetop10 Source: Beer Statistics Edition. The Brewers of Europe 3

4 Spanish Beer Sector: An important contributor to the economy Brewing sector turnover: over 3 billion Total contribution to national economy as value added: around6billion Employment : 221,128 direct and indirect job (near 84% in the on-trade) About 4.5 billion revenue generated as aresult of taxes from the beer chain Source: The Contribution made by Beer to the European Economy. E&Y

5 BEER & THE ECONOMY 5

6 Value Added EU Value added due to the production and sale of beer : 50 billion euro Figures in the graph (million ) % 21% 20% 56% SPAIN Value added due to the production and sale of beer : 5.9 billion euro (12% EUR Value added) Figures in the graph (million ) 21% 14% 63% SPAIN : Direct effect brewing industry 2% Source: The Contribution made by Beer to the European Economy. E&Y

7 Direct Employment EU Direct employment due to beer : 128,800 jobs Source: The Contribution made by Beer to the European Economy. E&Y

8 Indirect employment EU Indirect employment due to beer : 320,000 jobs 39% 22% 39% SPAIN Indirect employment due to beer : 20,693 jobs (8% EUR indirect employment) 19% 1% 7% 10% 32% 10% 22% Source: The Contribution made by Beer to the European Economy. E&Y

9 Total effect on employment EU Total employment due to beer : 2 million jobs SPAIN Total employment due to beer : 221,128 jobs (11% EUR employment) 9

10 Government Revenues due to Beer EU Government revenues due to the production and sale of beer : 50.6 billion euro 18% 10% 24% SPAIN Government revenues due to the production and sale of beer : 4.4 billion euro (near 9% UE revenues) 1% 2% tax 16% 27% SPAIN Direct effect brewing industry : 2.4 billion euro 7% 36% 7% Direct 326 4% 13% 14% 67% 7% 46%

11 ON-TRADE SECTOR 11

12 Don tmiss! 12

13 GDP important contributor: 7% Evolution by subsectors On-trade: Main figures in Spain Bars Evolution establishments % output (million ) % Restaurants establishments % output (million ) % Cafés establishments % output (million ) % Catering establishments % output (million ) % Hotels establishments % output (million ) % TOTAL ESTABLISHMENTS % TOTA OUTPUT % TOTAL JOBS % Source: Hospitality Spanish Federation(FEHR) Highest added value chain for foodstuffs Bars account to 62% of establishments Almost bars were closed over this period (Source: Hospitality Spanish Federation(FEHR)) Spaniards reduced their expenditure by 4.1% and the number of visits by 3% in 2012 (Source: Ministry of Agriculture, Foodstuffs and Environment) 13

14 (Beer consumption in) Spain is (also) different We enjoy beer in a social manner, with friends or family, and always with something to eat: whenever there is beer, there is some food Beer is accompanied by some food in every 82% occasion of consumption (Source: Ministry of Agriculture, Foodstuffs and Environment) Beer is the favourite drink to have with tapas Beer is a driver : beer + tapas account to 12 billion (Source: Joint socioeconomic value of beer+tapas. Eratema 2011) Non alcoholic beverages such as water and juices (50.3%) soft drinks (39.3%) and wine (29.2%) are considered as possible drinks to replace beer if it is not available. Only 5% of beer consumers would choose spirits instead (Source: Market Resarch carried out by Quota. August 2013) 25% of the income of bars and restaurants is due to beer (Impact on the beer sector of tax modifications in Spain. PWC 2012) This figure increases to more than 30% if we consider the tandem beer+food 14

15 Beer consumption by channel 63% is consumed in the on-trade Almost 20% of consumers who visited an on-trade establishment drank beer Nevertheless, beer occasions of consumption in the on-trade reduced by 4.5%, while consumption in the off-trade increased by 3.5%. Beer consumption in the on-trade has decreased by 21% along the last 6 years 66% 32% Source: Ministry of Agriculture, Foodstuffs and Environment 15

16 Beer and the hospitality sector Development in the on trade consumption of beer per country in 2010 compared to 2008 Employment in the EU hospitality sector due to beer : 1.5 million jobs ( jobs) Large difference in percentage of on-trade and off trade consumption by countries Over 60% in Ireland, Portugal, Spainand Greece, with high induced employment Nevertheless there is an ongoing trend towards off-trade consumption: On-trade consumption decreased in 20 Member States Remained stable in 5 Only increased in 2 countries 16

17 Beer and the hospitality sector Volume of beer consumption in million hectolitres (left) and billion euro (right) 63% 71% 37% 29% 66% 83% 34% 17% 17

18 TOURISM SECTOR IN SPAIN 18

19 Tourism: Main figures in Spain GDP important contributor: 11% Spain is still the second largest earner worldwide, after the USA, and the first in Europe (US$ 56 billion) It ranks 4th in the world by arrivals (almost 59 million foreign visitors) spending 700 per person) Sun, sand & sea are yet the first attraction More than 300 days of sun a year More than 7,900 km of coast 551 beaches awarded with a blue flag But other attractions are coming up Culture (2nd country in the world in terms of cultural protected sites by the UNESCO World Heritage Centre) Environment (2nd country in Europe in terms of natural protected sites) Gastronomy (a real boom of Spanish cooks all over the world) Sources: Ministry of Industry, Energy and Tourism + WTO 19

20 Beer and tourism Direct link: on-trade, tourism and beer sales According to our estimations, foreign tourists purchase of beer accounts to more than 25% apparent consumption 89% of foreign visitors drank beer along their stay (Source: Market Resarch carried out by Quota. August 2013) Most beer consumed by foreign visitors (87%) was drank in the on-trade (Source: Market Resarchcarried out by Quota. August 2013) 20

21 Whatelsecan bedone? Whatare wedoing? 21

22 New imaginary: a sophisticated drink CERVECEAR CAMPAIGN (Going out for a beer) WORKING FOR THE BEER CATEGORY FOT THE PURPOSE OF RENFORCING IMAGE ANDACHIEVING ANEWPOSITION IN THEMARKET Beerseenasanoptionnotonlywith tapa but alsowith meals New consumption moments by creating links between gastronomy andkinds ofbeer Beer consumption as a ritual in pubs and restaurants Sophisticated and aspirational product OUR MESSAGES Every kind of beer with it own container Spanish brands offer consumers many different choices Beer combines with every meal and kind of food: Mexican, Japanese, etc. HORECA sector guarantees perfect serve 22

23 New imaginary: a sophisticated drink WHAT ARE WE DOING? Non conventional advertising in key media with beer consumption in a sophisticated ambiance Perfect serve sessions with relevant chefs and bartenders Beer and food tasting for key target Press trips in order to increase knowledge about culture and history of beer Blogger relations to engage lifestyle and gastronomy influencers Ángel León, Chef con Estrella Michelin 23

24 Major role of the on-trade in the economy Maintaining a reduced VAT rate Beer as a driver in the on-trade and the economy: a political consensus Socialist party s electoral programme: no increase in the excise rate for beer, wine and other low alcoholic beverages Present government has just increased by 10% the excise rate on alcoholic beverages but the rate has been maintained for beer, wine and other fermented beverages According to the Ministry of Finance the on-trade should not be damaged and some products have more negative externalities than other 24

25 As a conclusion Beer is a very relevant hospitality driver Strong hospitality sector essential for job creation and growth Beer is a major contributor to the economy and society 25

26 THANK YOU VERY MUCH! 26