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8.6 pc fall of beer market in 2014

The beer market’s volume fell to 14.9 million hectolitres in 2014, down by 8.6% as compared to that recorded in 2013, and the per capita consumption went down to 74 litres in 2014, from 81 litres, due to the fiscal pressure on the sector, triggered by the 16% increase in the excise duty in January 2013, Lucian Ghinea, President of the Romanian Brewers’ Association, said on Tuesday during a press conference.

In 2014 the excise duty was increased by 4.77% due bringing to date of the exchange rate used in calculating the excise duty. The brewers’ representatives say that since 2008 to present the excise went up by 50%.

“After two consecutive years of significant contraction in consumption due mainly to the fiscal pressure, the beer market needs more than ever a breath of fresh air. All the studies we have conducted in the past years have contradicted the reason for fiscal pressure: the increase in the excise duty on beer cannot generate higher revenues to the state budget, but quite the contrary — amid the shrunk consumption — losses to the state budget related to VAT and other charges related to beer production exceeded the revenues from excise duties,” said Lucian Ghinea.

In 2014 beer imports have decreased by 0.09 million hectolitres, having reached 0.45 million hectolitres. In terms of exports, these fell by 0.05 million hectolitres, to 0.3 million hectolitres.

The contraction of the beer market was felt also in the number of employees of the breweries that are Association members. Thus, the number of jobs went down by 300 in 2014, to 3,700.

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