Beer business keeps economy bubbling

Beer business pours $17b into thirsty Australian economy


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Research has brought to a head Australian beer’s contribution to the national economy

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NEW research has brought to a head Australian beer’s contribution to the national economy, as well as its state-by-state importance, from grain to glass.

Economic analysis by ACIL Allen Consulting for the Brewers Association of Australia shows 95 per cent of all beer sold in Australia is made locally.

That production process supports over 143,000 Australian jobs and generates almost $17 billion a year in economic activity.

Beer making effectively accounts for 1.02pc of our gross domestic product (GDP).

“Instinctively, Australians know beer is a part of our national lifeblood, but it is also a vital lubricant for our economy at national, state and local levels,” said Brewers Association chief executive officer, Brett Heffernan.

“It’s also a major ingredient in what brings families, friends, colleagues and entire communities together.

“When you add in the jobs and economic inputs beer drives across agriculture (primarily barley and hops); the broader supply chain, including manufacturing and transport sectors; through to pubs, clubs, food service outlets and liquor retailers, beer production in Australia generates a massive 105,148 full-time equivalent jobs and $16.9b a year to the economy.”

Mr Heffernan said independent of its flow-on effects through the broader economy, beer’s direct supply chain supported 14,297 full-time Australian jobs.

That in turn generated $6.2 billion in economic activity each year.

Every Australian schooner of beer sold in pubs and other licensed premises contributes $6.24 to GDP - Brett Heffernan, Brewers Association of Australia

For every direct full-time equivalent job making beer in an Australian brewery (3954), a further 26.6 jobs were created elsewhere in the economy.

“Every Australian schooner of beer sold in pubs and other licensed premises contributes $6.24 to GDP.

“Its off-license equivalent in packaged liquor store beer sales contributes $2.73 to GDP.

“The complete 2015-16 data on beer and taxes is also compelling.

In fact, federal government taxes were the single biggest ingredient in the cost of a beer.

Australian beer drinkers poured almost $3.8b into government coffers – $2b in excise and $1.78b in goods and services tax.

“More than 9.1m Australians celebrate with a beer, Mr Heffernan said.

“Who knew the beer is, itself, worth celebrating? It’s a supplier of local jobs and a major economic driver and revenue raiser for government.

“It’s also the spice of life, so enjoy in moderation, secure in the knowledge you’re doing your country a favour.”

The story Beer business keeps economy bubbling first appeared on Farm Online.

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