Rodolphe de Looz-Corswarem Secretary General, The Brewers of Europe
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Hearing on The global financial crisis and industrial changes in the main European manufacturing and services sectors Rodolphe de Looz-Corswarem Secretary General, The Brewers of Europe CCMI meeting, 6 th February 2009 European Economic and Social Committee The European Food and Drink industry
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The European Food and Drink industry. Hearing on The global financial crisis and industrial changes in the main European manufacturing and services sectors. Rodolphe de Looz-Corswarem Secretary General, The Brewers of Europe CCMI meeting, 6 th February 2009 - PowerPoint PPT Presentation
Transcript of Rodolphe de Looz-Corswarem Secretary General, The Brewers of Europe
Hearing on
The global financial crisis and industrial changes in the main European manufacturing and services
sectors
Rodolphe de Looz-CorswaremSecretary General, The Brewers of Europe
CCMI meeting, 6th February 2009European Economic and Social Committee
The European Food and Drink industry
The Brewers of Europe
• Founded in 1958 • It is the voice of the European brewing sector• 27 national brewing associations in Europe• Over 95% of the beer brewed in Europe
• Our mission:
Secure brewers’ right to responsibly
brew and market beer
• Beer - part of European food heritage and economy
The European Brewing Sector
• Over 3000 breweries active • 440 million hectolitres beer brewed in 2007• 25% of the world’s beer production
• The 4 world leaders are European producers• Over 2.5 million jobs generated directly and indirectly• Revenue from all taxes → 39 billion € per year• 57,5 billion € value added to the European economy
each year
Source: Ernst & Young – The Contribution made by Beer to the European Economy – 2006
Barth/.Haas Report 2007/2008
At a glance in 2007Turnover Employment R&D
€ 913 billion 4.3 million people0.24%
of F&D output
SMEs Number of companies Household expenditure
48.5% of the F&D turnover
99.1% of the F&D companies
308,000 12.6%
EU market share of global exports
19.8% (24.6% in 1998)
Global markets
The European Food and Drink industry
International Food & Drinks: exports shares
Major trends on food retail markets
• Decrease of food in household expenditure• Changes in purchase and consumption patterns
• Market share of 5 TOP retailers are above 50% in 12 MS and above 70% in 5 MS
• Increasing share of private labels and market share of discounters
• Market shares of discouters increase
• Pressure on prices to consumers• Limited negotiating power of most manufacturers
Price trends in agricultural markets
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Wheat Maize Bread Oil price index
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Key Crisis Challenges
• Agricultural raw materials: high price volatility• Long term up-wards trends of agricultural raw material prices• Energy becoming key factor for competitiveness
• Increased difficulty of access to finance / credits• Reticence for providing Risk coverage / insurance by banks• Inmediate payment demands • Slowing down of exports• Challenge to whole supply chain (logistics, packaging, IT,
etc) as all businesses suffer from crisis
World beer consumption 2002 - 2008
Source: Canadean Global Beer Trends 2008
Recent trends in the brewing sector
• Consolidation of the sector Top 10 world brewers 2003 53 % world market share
2008 ≥ 64 % world market share
• Investments in logistics, production, variety and quality• Production efficiency increase (less water and energy)• Growing presence of micro-breweries
• Reductions in direct employment• Sales decrease in 4th quarter 2008 – arriving to -8%
• Impact on restaurants, bars, cafés and events
Brewing sector - Public authorities attitude
• Increase of beer taxatione.g. France, Finland, Latvia, Netherlands, Poland, Ukraine, UK
• Research for revenues by other fiscal measures affecting the food and drinks, and the brewing sector
• Calls for restrictions in advertising and sponsoring
• Unequal response to brewers’ CSR initiatives in Europe
The brewing sector and the single market
Internal market benefits due to, among others:
- Transport and tourism facilities
- Better coordination in administrative procedures
- Common regulations for food products
- Easier access to raw materials and consumers
Some challenges:
• Diverging labelling provisions across Europe• Call for restrictions in availability and cross-border shopping• Different measures for deposit systems and packaging
Thank you
