Bulgarian Brewing Industry Registers First COVID-Related Losses
The Union of Brewers in Bulgaria has voiced the industry's concerns caused by the coronavirus crisis. The shutdown of food and drink outlets has slashed 20 per cent off their market, which is compounded by decreased consumption in the retail sector, the Union said "The current crisis is affecting employment in the brewing industry.
Between 35 and 40 per cent of employees cater directly or indirectly for the hospitality industry, which is in lockdown. Similarly to 2014, another crisis year for brewers, the businesses' chief concern is to retain employees," said the Union's Executive Director Ivana Radomirova.
Data of the National Social Security Institute (NSSI) for 2019 show that 2,150 people were employed in beer and malt production and more than 9,000 worked in the supply sectors.
In total, some 34,700 jobs are generated by beer production and sale, including the hospitality industry and retail. Moreover, NSSI data for the last 15 years show that brewing industry jobs are the highest paid compared to other sectors of the food industry and that brewing ranks among the top ten economic activities in terms of average contributory income every year, the Union of Brewers said.
The latest study by Europe Economics put the economic impact of beer in Bulgaria at 225 million euro in value added and 168 million euro in government revenues. If the industry plunges to its 2014-2015 levels, which are some of the lowest in the last 20 years, the industry's value added will drop by an estimated 26 per cent, beer-related government revenues will shrink by no less than 10-15 per cent, and at least 25 per cent of jobs in the supply and the customer sectors will be lost.
Source: BTA Daily news