The IBA’s market review also suggests that there’s a ‘beer renaissance’ on the horizon with an abundance of new brewers attempting to enter the market. However this potential growth is being put at risk by the Government increasing excise on alcohol in the last two Budgets with tax now accounting for 30% of the price of a pint. The Association warned that in order for the emerging players to reach their full growth potential at this time the Government must reverse excise on alcohol.
Direct employment now stands at 1,934, up from 1,506 and the brewing sector continues to support over 3,000 farming families.
“The Irish Brewers Association ‘Irish Beer 2013’ report highlights the important role that the brewing sector has in the Irish economy” stated IBA Senior Executive Thomas Burke commenting on the report, “with beer production remaining the most important sector within the drinks industry in terms of indigenous manufacturing, providing jobs in major brewing facilities throughout the country. It’s a sector which has continued to show resilience despite extremely difficult trading conditions in the last 12 months.
“The brewing sector has continued to invest in 2013 and overall employment is up, driven mainly by increases in exports levels which have offset domestic market contraction somewhat. The sector continues to make a huge contribution to the Irish economy both directly and indirectly with close to 2,000 direct employees and thousands more jobs supported from grain to glass.
“The last two years has seen beer duty increase by a staggering 42%,” he continued, “In this time Government has added 28 cent to the price of a pint through duty and VAT increases. These increases have put the sector at risk, which is extremely worrying at a time when we’re seeing encouraging signs of a beer renaissance emerging.
“The Government must now support this sector of the economy by reducing the excise burden and allowing these emerging breweries to achieve their huge potential,” he concluded, urging the Government to “reverse excise, create jobs.”
Over 85% of all beer sold in Ireland is manufactured or distributed by members of the IBA. The Association’s mission is to promote the business interests of the Irish brewing sector by ensuring that the economic value of the industry is clearly understood. It’s committed to ensuring that the natural and social nature of its members’ products is appreciated by consumers as part of a moderate and healthy lifestyle.