Subscribe

Beer Brewers Blame Tax For Falling Sales

/ 23rd August 2016 /
Ed McKenna

A report by the Irish Brewers Association shows that Irish beer exports rose 16% in 2015 and are valued at over €265 million, with 43% of beer produced in Ireland being exported. Production was up 6%, the first time since 2011 that beer production increased year-n-year.

According to data from the Revenue Commissioners, beer remains Ireland’s favourite drink, accounting for a 47% market share of all alcohol consumed in 2015. But the tax burden is holding back trade, and the IBA wants the rates of excise reduced.

Jonathan McDade of the IBA said: “In 2015 Ireland’s economy continued to perform well with falling unemployment, increased incomes, improving exchequer returns, a tourism boom and a recovering retail sector. Despite these positive conditions beer consumption fell by 2% compared to 2014.

"Last year the IBA reported that, for the first time in a decade, per capita beer consumption rose by 3.5% in 2014 compared to 2013. The fall in consumption in 2015, however, reflects the overarching trend of alcohol consumption falling by 25% since 2001.

“Irish consumers pay the third highest rates of excise on beer in the European Union, eleven times greater than beer drinkers in Germany.  Excise is a tax on jobs, tourism and the hospitality sector and we call on the government to reduce excise on Ireland’s hard-pressed consumers.”

In Association with

IBA Info GraphicsV6

Excise taxes on beer have increased by 42% in the past four years, and Ireland has the third highest excise on beer in the EU.

The craft beer sector gained market share, with an estimated 2% of total beer sales in 2015, up from 1.2% in 2014.

McDade added: “The real success story of the Irish brewing sector is its exports, with a 16% value increase compared to 2014.  Ireland already produces some of the world’s most popular and iconic beer brands and it is encouraging that Irish beer remains so popular in other markets.”

Pubs are on the up, too, so perhaps publicans can wave goodbye to the years of the poor mouth since 2008. In 2015, 67.3% of beer was purchased in a licenced premises compared with 63.3% in 2014.

Consumption of stout and ale rose, with lager’s market share declining. Stout and ale now take just short of 40% of beer consumption, with lager sliding from 63% in 2014 to 60.4% in 2015.

“If the success story of the Irish brewing sector is to continue, then the government must support the sector with a reduction in excise on beer in this year’s budget," said McDade. Excise is a regressive tax on jobs, regional development, the tourism sector and on hard-pressed consumers. A decrease in beer excise could facilitate further investment in the brewing supply line from grain to glass.”

 

IRISH BREWERS ASSOC

Sign up to The Business Plus Panel to help shape the business decisions of tomorrow and win vouchers for your opinions! 
linkedin facebook pinterest youtube rss twitter instagram facebook-blank rss-blank linkedin-blank pinterest youtube twitter instagram