Brewing industry: Key contributor to growth for the Greek economy

Brewing industry: Key contributor to growth for the Greek economy

Five proposals from the Hellenic Association of Brewers regarding the development of the industry

• 1,9 bil€ contribution to the tax income during the economic crisis

• 2.000 direct job positions

According to the Hellenic Association of Brewers, the brewing industry is considered as a key contributor to growth for the Greek economy. This was emphasized in the first press conference held on 14.12.2016, after the expansion of the Association in 2016, where big and small breweries are equally represented. The brewing industry is a dynamic and continuously evolving industry: from only 13 breweries in 2009, it reached 35 breweries in 2016. More specific, the brewing industry is a pillar of support for the Greek economy with a contribution to the tax income of 640 mil. € for 2015 and income from the excise duty on beer for 2016 expected to reach 160 mil€. It is worth mentioning that the industry’s contribution to the tax income during the economic crisis reached a total of 1,9 bil€.

Of ultimate importance is the added value of the industry in the domestic production & distribution chain, which in 2015 reached 494 mil€ and its contribution to the country’s exports orientation with beer exports – in EU and non-EU countries- demonstrating an increase of 89%, reaching in 2015 432.000 hectoliters.

It is worth mentioning that 90% of the beer consumed in Greece is produced in factories that operate in our country, reaching 3.820.000 hectoliters production for 2015.

For further developing the beer sector and enhancing the local production, the members of the Hellenic Association of Brewers, propose the immediate modernization of the legal framework and the implementation of five proposals, which without further cost to the state annual budget, can contribute drastically to the development of innovation, to the empowerment of local production, the boosting of employment, the enhancement of the country’s extroversion and finally the creation of important added value for the Greek economy.

More specific, the proposals by the Hellenic Association of Brewers, for the development of the sector are connected, among other things, with the following:

• A flexible frame for the use of raw material, i.e. the use of fruit in beer production. This possibility will contribute to the absorption of Greek fruit production and the development of products of Greek identity, which can contribute to a competitive advantage and share in exports.

• The breweries’ possibility to produce and bottle fermented beverages, i.e. cider. This will allow these products to be produced in Greece, when they are now only imported by 100%

• Breweries participation in the investment plans of the Ministry of Agricultural Development. This initiative could give a significant boost to the sector, since the Breweries are not subject to such investment programmes.

• Motivation to farmers and breweries to produce agricultural products relevant to beer production and the creation of tanneries and hops processing plants.

• Reduction of the Excise duty in beer, to reach the European average.

As described, during the press conference, by the President of the Hellenic Association of Brewers, Mr. Alexandros Karafillidis: “The brewing industry can become a key contributor to growth for the Greek economy. As enterprises with significant presence and contribution to the Greek economy, we put forward 5 proposals, which can be implemented in an easy and immediate way and without any further cost for the Greek state, offering significant benefits to our country in the specific moment. The Hellenic Association of Brewers believes in the dynamics and prospective of this country and we are committed, as an industry, to be present and support the local production. We are committed to continue to produce in Greece in Greek breweries, which represent 90% of the beer consumption, and to support exports. For all the above, it is essential to have the appropriate motives, a modernized legal framework and a fair taxation. The brewing industry can and will support growth”.

It is important to note that the brewing industry is a basic employer for the country, conserving 2.000 direct and 61.000 indirect job positions. It also supports actively 5.000 providers and 3.200 farmers, enhancing the local agricultural production through programmes of contractual farming.

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