Speaking at the conference “Mediafax Talks about Brewing and Hospitality,” Bratu said the first eight months of the year pushed the local beer market to a record low since 2008, when it reached its peak.
Bratu also said tax increases this year, namely a 10% increase in excise duties computed in euros, and the evolution of the currency exchange rate, which altogether triggered a total increase of 16%, led to a 8% decline in consumption, which will also affect other economic sectors. He went on saying the situation will not improve, considering the government’s planned tax increases starting 2014.
In order to explain the interdependence between the beer and hospitality industries, Bratu presented the outcome of an Ernst&Young survey, which says six new jobs are created in the hospitality industry by each employee in the local beer sector. Thus, 8.5% of new jobs in the hospitality industry are due to beer sales, according to the survey.
Also, the contribution of the hospitality industry through the payment of direct and indirect taxes to the state budget exceeds EUR603 million annually, of which, direct contributions to the state budget, namely, VAT (EUR451 million), workforce-related taxes (EUR95 million) and excise duties paid by players in the HoReCa industry (EUR1.8 million). Indirect contributions to the state budget, namely, excise duties paid by spirits producers for the beverage quantities consumed in the HORECA sector (beer -EUR37 million, spirits – EUR18 million and sparkling wine – EUR0.5 million, wine – EUR0).
Thus, despite difficult market conditions, the growth rate of the hospitality industry reached 14.5% between 2000 and 2010, above the GDP growth rate of only 12.5%.
Beer sales in Romania fell 3% in volume on the year to 8 million hectoliters in the first half of 2013, due to low purchase power, moody summer weather and increased taxation, the brewers’ association said early October. It also said beer sales in 2013 will go below last year’s level of 18.2 million hectoliters.
Founded in 2004, the Romanian Brewers Association covers over 90% of the local beer market.