Spirits contribution to European economy laid bare

The economic contribution of Europe’s spirits industry to the European economy has been revealed in a new report from Ernst & Young.

According to the report, which was commissioned by industry trade body CEPS, sales of European spirits reached €58 bn in 2009, creating €27bn in value added for the European economy and tax revenues of around €31 billion – equivalent to the total income tax revenue of Spain or the total government expenditure of Slovakia.

The industry also creates over 900,000 jobs, around two thirds of which are in the hospitality (638,800) and retail sectors (85,200). This is more than the combined total labour force of Malta and Estonia.

Speaking at the launch of the report, Jamie Fortescue, director general of CEPS said: “Many European industries are still nursing their post-recession hangovers but this report shows that our sector continues to be an important pillar of the European economy. We create jobs, contribute significantly to government coffers and are unrivalled in terms of global exports”.

With over €5.7bn in annual exports, the European spirits industry is the largest exporter in the agro-food sector.

“Our most important export markets are the USA, Singapore – as a transit to the Far East, Russia, China and South Africa,” added Fortescue. “Spirits exports to these countries currently generate a positive trade balance of €4.8bn for the EU.

“The outlook for 2011 is even more positive, with continued strong growth in Asia in particular. Trade liberalisation between the EU and important emerging markets like Korea and India will further improve our long-term prospects.”

Alan Lodge, 17.11.2010