TIME TO RECOVER
TIME TO #RECONNECT

TIME TO SUPPORT
THE HOSPITALITY SECTOR

SUPPORTING THE BREWING AND HOSPITILATY SECTOR IS KEY TO THE EUROPEAN RECOVERY

DISCOVER NOW HOW THE BEER HOSPITALITY CAN KICKSTART THE EUROPEAN RECOVERY

The impact of Covid19

Getting back to bars, pubs, cafés and festivals with friends, family and local communities will be a symbol of recovery from the COVID19 pandemic. It will also help to reignite the whole European economy and rebuild society.

The Europe Economics’ Beer Covid Impact Report shows how much the beer hospitality trade has suffered and the impact on jobs, value and tax revenues generated by beer. In 2020, beer sold on-trade dropped 40% compared to 2019.

Many hospitality establishments will unfortunately never reopen, even after the lockdown ends. However, many in the sector have weathered the crisis, making the necessary investments to

REACTING TO THE CRISIS

Brewers are thankful for the key workers fighting the pandemic on the front line. We give our support to those helping to keep society moving.

Brewers stood ready to assist public health efforts through actions such as logistics, support and alcohol gel production. We also stand in solidarity with a hospitality sector whose hundreds of thousands of businesses had to close and lose their income, but typically spent the first lockdown investing to implement new social distancing obligations. We will continue to support these establishments, including through the recovery of unconsumed beer and in case of further changes that may be needed to allow for COVID-safe re-openings in line with new legal requirements.

PROTECT people
and the value chain

The Brewers of Europe and its members, promoting the interests of over 11,000 breweries operating in Europe, call for government support measures to be maintained, extended, or put into place for hospitality establishments and their wider ecosystem.

These measures are crucial if businesses are to survive the curtailment of their ability to operate fully and profitably. They are key to supporting the whole value chain due to their interconnectivity and mutual dependence.

It is also crucial that support should be maintained as businesses begin their recovery while only partial opening is permitted, as citizens are progressively permitted to expand their social interactions and as consumer confidence gradually rebuilds.

Time to reconnect with your favourite bar

SUPPORT THE HOSPITALITY SECTOR TO RECOVER AND RECONNECT

The beer sector is embedded in communities, sourcing locally, creating 2.6 million jobs in villages, towns, and cities across the whole of Europe. This broad reach also provides significant tax revenues and value to local and national governments, in particular through hospitality beer sales.

However, our modelling suggests the number of jobs created by beer fell from 2.6 million people in 2019 to approximately 1.8 million in 2020, a fall of 33%, or around 860,000 jobs. These jobs can return if everyone gets behind beer hospitality, including governments.

Hospitality is central both to beer and to the European economy. When society starts to reopen, bars, pubs, restaurants, and cafés must be supported to welcome customers and begin to #reconnect once more.

Most establishments spent the first lockdown setting up robust and effective social distancing measures to ensure COVID-safe environments. We also support venues in any other further actions required to allow a reopening that is safe, sustainable and in line with legal requirements.

The following support measures are essential to ensure these businesses are also in a position economically to open as viable, sustainable venues:

PROLONGED TEMPORARY UNEMPLOYMENT SCHEMES

Temporary unemployment schemes such as furlough need to be prolonged to allow staff to return upon the reopening of businesses and until full operations can once again recommence.

loans & GRANTS

Flexible liquidity loans and grants, including state aid, can help provide cashflow to allow companies to fulfil financial obligations whilst income is often zero during lockdown and potentially still very minimal during partial reopening.

Excise tax

Excise recovery schemes can once again help prevent taxes being paid on beer that is ultimately unconsumed. Targeted excise reductions can help sectors such as brewing that are disproportionately impacted by the hospitality sector shutdown.

VAT

The extension or introduction of reduced VAT rates beyond reopening, often specifically targeted at the hospitality sector and including beer, are critical to supporting reopening and helping the return of customers to bars, pubs, restaurants and cafés once the doors reopen.