1. Economics of Breweing Industry
Tomáš Maier
SS 2017/2018

2. News Heineken in Mexico Pivex Brewery Kail Březňák Beránek
Fermenting cellar in Svijany
Beer festival in Brno
Beer taps in hotel rooms
Beer in UK supermarkets 188% more affordable than 30 years ago

3. 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

4. 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?

5. Excise taxes - Mineral oils - Ethanol - Beer
- Wine and semi-finished products
- Tabacco

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

8. 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

9. 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 %

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

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

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

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

14. 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.

15. Share of excise tax added to beer in selected European countries as of July 2017 (EUR/hl), source: statistica.com

16. Europe – Compairing I. (2013)

17. Europe – Compairing II. (2013)

18. 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

19. 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

23. 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.).

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