THE IMPACT OF COVID19
The Europe Economics’ Beer Covid Impact Report shows that beer hospitality continued to suffer in 2021. Beer sales in pubs, bars and restaurants in 2021 were still 35% down on 2019.
Due to the important contribution made by beer to the European economy and the far-reaching connections throughout the beer value chain, the shutdowns of the hospitality and events sector had a dramatic impact not just on those sectors, but also on brewing and its capacity to create jobs, value, and government revenues throughout the beer chain.
Whilst the impact of COVID 19 may be receding, it is clear that the European economy is now facing new, additional pressures which will affect consumer spending and place greater financial burdens on many businesses.
Many hospitality establishments will unfortunately never reopen, even with lockdowns behind us.
REACTING TO THE CRISIS
Brewers are thankful to the key workers who fought the pandemic on the front line. We gave our full 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 stood 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.
Brewers responded by:
- Starting to make hand sanitiser at the beginning of the crisis.
- Support given in solidarity with front-line staff, those working to keep us safe.
- Distribution offered for crucial supplies and equipment.
- Research knowledge and resources offered to those working to find cures, treatment and preventions.
- Marketing space handed over to public authorities to deliver the public health message to the citizens.
- Investments made to have the safest possible drinking environments.
- Hospitality voucher schemes quickly set up by brewers to give much needed income to bars.
and the value chain
The Brewers of Europe and its members, promoting the interests of over 10,000 breweries operating in Europe, call for government support measures to be maintained, extended, or put into place for hospitality establishments and their wider ecosystem and not introduce additional burdens on the sector.
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.
JOBS & VALUE RETURNING IN 2021 BUT STILL WELL BELOW PRE COVID NUMBERS
The beer sector is embedded in communities, sourcing locally, creating pre-Covid 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.
Approximately half of the beer generated jobs lost in 2020 were regained, ending 2021 with 2.3 million jobs, but still 16% below 2019 levels. These jobs can return if everyone gets behind beer hospitality, including governments.
Hospitality is central both to beer and to the European economy.
Most establishments spent the first lockdown setting up robust and effective social distancing measures to ensure COVID-safe environments.
Beer hospitality has further potential to drive europe’s recovery:
PURSUING THE JOBS RECOVERY
254,000 more jobs are ready to be recovered if the sector can return to pre-covid levels when 2.6m jobs were generated by beer in Europe.
After the recovery of €5.1bn in 2021, a further €6.2bn in value add can be returned to the economy if the beer sector gets back to pre-covid levels.
TAX REVENUE BOOST
A further €6bn in taxes can be gathered if we get the beer sector back to pre-Covid levels.
DISCOVER NOW HOW THE BEER HOSPITALITY CAN KICKSTART THE EUROPEAN RECOVERY
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