The future is bright for beer – given the right policy framework
Beer plays an important role in Europe’s economy, but excise burdens, production costs and the post-Covid environment are putting pressure on the sector’s ability to act as a motor for the whole economy.
Europe’s beers are deeply rooted in heritage and innovation. They are embedded in our culture. Crucially, European beer is an engine of growth across the European economy – which is all too easily overlooked. Last week, The Brewers of Europe released a report by Europe Economics showing just how much the beer value chain contributes to the continent’s economic fabric, supporting jobs and generating government revenues across all member states.
Over 2 million jobs in the EU – around 1 percent of total EU employment – are directly or indirectly created by beer. From the farmers who cultivate the barley and hops to the brewers who perfect their craft, to the bar staff who serve the final products, beer creates jobs across a diverse range of sectors. And despite the post-Covid challenges, skyrocketing production costs and diminished consumer spending power, job creation in the beer value chain is up by 300,000 since 2020.
Over 2 million jobs in the EU – around 1 percent of total EU employment – are directly or indirectly created by beer.
The report shows that consumer spending on beer adds up to some €110 billion per year, meaning that beer contributes over €52 billion in value-added to the EU economy. Beer also generates over €40 billion in government revenues across the EU through various taxes.
This, however, comes at a time when excise burdens and production costs are particularly putting a break on the capacity to relaunch beer consumption in bars, pubs, cafés and restaurants. The hospitality side of the market generates the most value, but it has also struggled to return to pre-Covid levels.
Responsibility
One of the areas where brewing is at the forefront, helping to maintain the European beer sector as an economic powerhouse, is innovation – in promoting responsible drinking, product development and environmental sustainability.
Let’s start with responsibility – where part of our innovative commitment is also tied into product development. Beer is already low alcohol, with an average 4.5 percent ABV, but brewers are widening their range of lower alcohol beers. Today, one in every 15 beers consumed in Europe is non-alcohol. Brewers have not only invested in improving the taste and variety of these products, but also in the promotion and availability of them, really backing this side of their business. Brewers are empowering consumers with the tools to take responsible decisions. This is about choice: if people don’t wish to, or simply shouldn’t, consume alcohol, they can still participate in the social experience of sharing a beer with friends and family.
At the same time, brewers have pioneered initiatives in education and community engagement to encourage a better drinking culture and help reduce alcohol-related harm. Five years ago, we rolled out Proud to be Clear, detailing alcohol content, calorie values and ingredients on beer labels. These voluntary actions ensure we are empowering consumers, not solely through the products available to them, but also through the information provided.
Brewing sustainability
Brewers have integrated environmentally friendly practices into every aspect of the production cycle and supply chain. Breweries use energy-efficient technologies, invest in the circular economy and reduce waste. For example, they’ve reduced the volume of water needed to produce each liter of beer. As for energy, breweries invest heavily in renewable sources like solar panels and wind turbines.
We are also trailblazers when it comes to packaging. Our use of Deposit Return Systems has massively reduced waste and promoted recycling for cans. Our 50-litre kegs are the ultimate sustainable packaging, with a lifespan of over 30 years. Glass beer bottles are collected for reuse or returned for recycling in collection systems that prevent waste for landfill. On top of this, breweries are pushing boundaries with lightweight bottles and biodegradable materials. It makes business sense, too.
And finally, when it comes to innovation, brewers’ craft is as much a science as it is an art. New flavors, ingredients and brewing techniques are attracting a new generation of beer enthusiasts and helping bring adult consumers across, or back, to beer – the low-alcohol category that now also increasingly includes even lower and non-alcohol beers.
When it comes to innovation, brewers’ craft is as much a science as it is an art. New flavors, ingredients and brewing techniques are attracting a new generation of beer enthusiasts.
Going for growth
As the EU embarks on a new chapter – with a new European Commission and European Parliament – there is rightly an emphasis on promoting economic growth.
Europe boasts an enviable food and drinks sector, which has strategic importance to the economy. The brewing sector is key to this – an important job and value creator – and we are doing this alongside our partners. Europe should be proud of its beer, promoting and supporting it both within the EU and around the world.
Europe boasts an enviable food and drinks sector, which has strategic importance to the economy. The brewing sector is key to this .
This is not just about beer. It is about ensuring that Europe remains a place where tradition and innovation come together to shape a prosperous, sustainable future. Policymakers can shape a regulatory framework that shackles that growth, but they can also provide a supportive policy framework. By encouraging innovation in lower alcohol products, setting policies that allow their continued availability and marketing, utilizing excise to nudge consumers towards lower alcohol products and stimulate consumption in the hospitality sector, and by setting environmental legislation that triggers further investment in renewables and supports the effective packaging systems already in place.
We look forward to working closely with EU decision-makers to foster economic growth, job creation and a future where Europe continues to lead in quality and creativity. Let’s all drink a beer to that!
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