Domestic beer production is worth $16.5 billion a year and accounts for 84 per cent of beer consumed in Australia, an ACIL Allen Consulting report says.
Commissioned by the Brewers Association of Australia, Economic Contribution of the Australian Brewing Industry 2017-18 from Producers to Consumers, found beer produced in Australia supports almost 103,000 full-time local jobs across production, supply chain and retail sectors.
Brewers Association CEO Brett Heffernan says that while data for 2017-18 tracked slightly lower than 2015-16 due to an increase in imports, (up to 16.2 per cent from 14 per cent) beer was “predominantly a domestic industry”. The three major brewers – CUB, Lion and Coopers – account for 79.4 per cent of sales volume, Heffernan says.
The report found that locally-brewed beer supports more than 12,500 jobs and generates around $6 billion in revenue, in its direct supply chain alone.
“When you add in the jobs and economic inputs beer drives across agriculture (primarily malting barley and hops); the broader supply chain, including manufacturing, packaging and transport sectors; through to pubs, clubs, cafes, restaurants and retailers; beer production in Australia generates a massive 102,816 full-time equivalent jobs and $16.5 billion a year to the economy,” Heffernan says.
“For every direct full-time equivalent job making beer in an Australian brewery (3,700), a further 26.8 jobs are created elsewhere in the economy. Every Australian schooner of beer sold in pubs and other licensed premises contributes $6.46 to GDP, while its off-license equivalent in packaged liquor store sales contributes $2.72 to GDP.”
The report also detailed how, despite demand for low and mid-strength beers remaining constant at 26.5 per cent of sales volume, the average amount of alcohol by volume in full-strength beer has dropped from five per cent to 4.4 per cent.
“The Australian Bureau of Statistics reports that Aussies are drinking less alcohol today than at any point in the last 55 years, with 84 per cent of us drinking within recommended guidelines. That’s very positive cultural change,” Heffernan says.
Little brewers than can
Though the report found small brewers make up only 3.4 per cent of sales volume, Independent Brewers Association chair Jamie Cook told Food & Drink Business their impact is much higher.
“The independent brewers are certainly delivering a disproportionate amount of economic benefit versus our market share – we have a 5.9 per cent share of volume and close to 10 per cent share of value.
“The last time we checked in 2017, we generated 2700 jobs, which is more than 40% of direct jobs in the total brewing industry,” Cook says.
