Economics of Breweing Industry Tomáš Maier WS 2017/2018

Tip Monastery beer celebration: https://www.augustiniani.cz/novinky/pivobrani-2017

News Great American Beer festival: https://www.greatamericanbeerfestival.com/wp-content/uploads/2017/10/2017-GABF-Winners.pdf New avertising of Staropramen: http://www.tvspoty.cz/staropramen-na-smichove-vzdycky-drzi-spolu/ St. Catrine Church in Brussels survives: http://www.xpats.com/sainte-catherine-church-launch-its-own-beer

Example Calculate the trend fuction for beer consumption per capita Calculate regression between wine consumption (dependent variable) and beer consumption (independent variable). For previous point calculate the elasticity for the last year

Example Calculate the share of total export on total production for 2015 and 2016 Calculate the total import on Czech consumption for 2015 and 2016 By how many % had grown the import from non EU between 2016/2015? What can be the reason?

Excise taxes - Mineral oils - Ethanol - Beer - Wine and semi-finished products - Tabacco https://www.celnisprava.cz/cz/dane/statistiky/Stranky/pivo.aspx

Excise tax beer MINIMAL RATE: EUR 0.748 per hL / degree Plato of finished product or EUR 1.87 per hL / degree of alcohol of finished product

Excise beer taxes I. 1991: - lower than 10 % EOW 190 CZK/hl - more than 13 % EOW 650 CZK/hl 1993 - 154 CZK/hl - 317 CZK/hl - 423 CZK/hl

Excise beer taxes II. 1995 (+ 4 %): - 157 CZK/hl - 320 CZK/hl Less than 10 thousands hl: 50 % 10 – 50 thousands hl: 40 % 50 – 100 thousands hl: 30 % 100 – 150 thousands hl: 20 % 150 – 200 thousands hl: 10 %

Excise beer taxes III. 1998: 200 thousands hl and more: 24 CZK 150 – 200 thousands hl: 21.6 CZK 100 – 150 thousands hl: 19.2 CZK 50 – 100 thousands hl: 16.8 CZK 10 – 50 thousands hl: 14.4 CZK Less than 10 thousands hl: 12 CZK

Excise beer taxes IV. 2010: 200: 32 CZK 150 – 200: 28.8 CZK To 10: 16 CZK

EU – Plato - % EOW Belgium, Bulgaria, Czech Republic, Germany, Greece, Spain, Italy, Malta, Netherlands, Austria, Poland, Portugese, Romania

EU - Alcohol Denmark, Estonia, France, Croatia, Ireland, Cyprus, Latvia, Lithuania, Hungaria, Slovenia, Slovakia, Finland, Sweeden, United Kongdom

EU – Progresivity - degresivity Belgium, Bulgaria, Czech Republic, Denmark, Germany, Estonia, Greece, France, Ireland, Latvia, Luxembourg, Hungaria, Malta, Netherlands, Austria, Poland, Portugese, Romania, Slovakia, Finland, United Kingdom.

Europe – Compairing I. (2013)

Europe – Compairing II. (2013)

Beer excise tax I. (2015) State VAT Excise tax (CZK/0.5l) Bulgaria 20 1.24 Germany 19 1.28 Luxembourg 17 1.29 Spain 21 1.35 Romania 24 1.40 Czechia 1.92 Lithuania 2.02 Slovakia 2.33 Latvia 2.46 Portugal 23 2.62 Malta 18 2.80 Poland 2.87 Belgium 2.99 Sources: Eurostat Excise Duty Tables, Part I Alcoholic Beverages, July 2015

Beer excise tax I. (2015) State VAT Excise tax (CZK/0.5l) Austria 20 3.24 Croatia 25 3.37 Hungary 27 Greece 23 4.21 Estonia 4.68 Denmark 4.86 Italy 22 4.93 Netherlands 21 5.13 Slovenia 7.84 Sweden 13.48 Ireland 14.62 United Kingdom 15.72 Finland 24 20.78 Sources: Eurostat Excise Duty Tables, Part I Alcoholic Beverages, July 2015

Example I. 1. Calculate the excise taxes of 1 hl of beer with 10,4 % EOW for big brewery. 2. Than for the same amount calculate the excise tax, if the tax system is connect to the amount of alcohol. The beer has 4 % of alcohol. Rate is 285 CZK/l of pure alcohol. 3. Lets increase the excise tax by 50 %. Calculate the increase of VAT. Than calculate relative increase of VAT collection. VAT is 21 %. (comparing to point 1.).

Example II. Caltulate the market share of microbreweries (lower annual production than 10 000 hl) for the year 2016. All data are in Excel file.