1. The European Food and Drink industry Rodolphe de Looz-Corswarem
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, 6th February 2009
European Economic and Social Committee

2. Secure brewers’ right to responsibly
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

3. 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

4. The European Food and Drink industry
At a glance in 2007
Turnover
Employment
R&D
€ 913 billion
4.3 million people
0.24%
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

5. International Food & Drinks: exports shares

6. 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

7. Price trends in agricultural markets

8. Cereal, Bread and Oil Price Indices

9. 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

10. World beer consumption 2002 - 2008
Source: Canadean Global Beer Trends 2008

11. Recent trends in the brewing sector
Consolidation of the sector
Top 10 world brewers % world market share
≥ 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

12. Brewing sector - Public authorities attitude
Increase of beer taxation
e.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

13. 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

14. Thank you 14