Europe’s brewers address tough issues at Brussels gala
Organised in collaboration with the Belgian Brewers and the fine cooks association Euro-Toques International, Alberto da Ponte, President of The Brewers of Europe said: “The gala highlighted the brewing sector’s contribution to the European economy in terms of employment and tax revenues and on issues like community involvement and responsible drinking. We also had a frank discussion about key policy issues, such as the need to get the tax framework right.”
EU President Herman Van Rompuy kicked off a lively roundtable debate which included MEP Marianne Thyssen, President of the European Parliament Beer Club, Duvel CEO Michel Moortgat, Heineken CEO Jean-Francois van Boxmeer, Mr da Ponte, Dr Martin Rawlings of the British Beer & Pub Association and Prof Philippe De Witte, a medical expert in alcohol addiction.
Herman Van Rompuy, the President of the Council of the EU, set the tone for the evening in his address, saying, “Beer is culture and tradition. But beer is also economy.” His mentioning his grandparents who ran a pub did not fail to impress the 400 people attending the gala especially since he also praised beer for playing an important social role. He said: “It is a symbol of hospitality and conviviality.”
Highlighting the importance of beer and beer producers for Europe, Mr van Rompuy called brewers the cultural ambassadors for Europe who deliver a major contribution to the economy. He also noted that they strengthen social cohesion, in a responsible way.
To which Dr Rawlings of the British Beer & Pub Association added: “Pubs are the places people go to when they want to leave Facebook behind.”
On taxes, the roundtable discussed an important study by tax consultancy PriceWaterhouseCoopers, which shows that the alcohol beverage sector (beer + wine + spirits) generates approximately 4.7 million jobs in the EU, most of them indirect jobs in the on-premise.
The study concludes that if excise taxes were raised by 20 percent in the whole of the EU, beer consumption would fall by 3.32 percent, while the profits of the beer industry would drop by more than 10 percent, due to a combination of lower margins and reduced volumes. This could result in over 70,000 jobs losses, the majority in the on-trade distribution channel.
Mr da Ponte hammered home this point: “Tax increases would hit brewers hard – including the 1.8 million European hospitality jobs they support - just as the economy is striving to emerge from a deeply damaging recession.”
The study also says that increases in excise tax revenue would be more than offset by decreases in the revenues obtained by Government.
The CEO of Duvel cautioned against hurting a job-rich sector steeped in tradition. “Most of Europe’s brewers are small and medium sized companies producing traditional local products, some with centuries of heritage,” said Michel Moortgat. “We need to protect this engine of innovation and job-creation that is so crucial.”
The issue that excise tax increases would reduce alcohol abuse – an argument most forcefully propounded by Scandinavian governments – was countered by Prof De Witte. He said that the link between taxes and alcohol abuse was very tenuous. “It is an assumption that if you raise taxes you decrease problems with alcohol abuse.” He referred to a recent Swedish study which shows that cultural factors of consumption had a more direct impact on the amount of alcohol abuse than taxes. Apparently, in northern Sweden, where people showed “Russian drinking habits”, excise tax hikes did not curb abuse. On the contrary. Levels of alcohol abuse remained high irrespective of the tax levy.
Let’s hope that politicians across Europe heard the message loud and clear that the beer sector is economically important for the EU. Beer sales account for EUR 111 billion in value, PriceWaterhouseCoopers says. That’s why Mr da Ponte emphasised: “You don’t kill the goose that lays the golden egg.”
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Dr Martin Rawlings of the British Beer & Pub Association, Prof Philippe De Witte, Duvel CEO Michel Moortgat, Alberto da Ponte, MEP Marianne Thyssen, President of the European Parliament Beer Club and Heineken CEO Jean-Francois van Boxmeer (from left to right) discussed several pressing issues facing the European brewing industry.
