Has beer overcome the sales problems caused by the pandemic?
Yes, from a beer consumption standpoint (by volume) strongly driven by an extraordinary 2022 in terms of tourism, with 2023 remaining at a high level. No, because of the increased difficulties in the supply of raw materials, packaging and energy at abnormally high prices, due to the war in Ukraine and inflation.
The liter numbers or global invoicing as they are now compared to 2019?
The sector grew by 9.5% compared to 2019 and by 20% compared to 2021. Consumption (in volume) increased and 2022 outperformed 2019, driven by an extraordinary year in tourism, but in terms of value, the impact on business was very different. This is because, as is well known, the war in Europe, the spiral of inflation and the rise in interest rates have hurt businesses and created unexpected uncertainties. Raw materials became more expensive, glass became more expensive, energy became more expensive, logistics became more expensive, even nitrogen became more expensive and rarer. To make matters worse, the last state budget brought a poisoned gift to our sector: a new tax that puts us at a huge disadvantage compared to competition from other drinks, such as wine, and also compared to Spanish competition.
The Brouwersbond is fighting for a lower tax on beer. He made that proposal to the government and parliament, if I remember correctly. Have you already won this battle? What level were they at and how are beers taxed today?
In general, Cervejeiros de Portugal believes that the sector has been wronged with the 2023 state budget, which was approved at the end of last year and which led to a 4% increase in beer excise duty in 2023, which cannot be justified in compared to wine, which does not pay this tax… The IEC/IABA on beer in Portugal in 2023 is 21.94 euros/hectolitre, while in Spain it is only 9.96 euros/hectolitre, that is, pay in Spain beer producers to the Spanish state less than half of the tax paid by domestic brewers. In addition, this value of the IEC in Spain has been frozen since 2005. This situation is extremely unfair, which has obviously had an impact on the industry. Incidentally, one of the situations that has worsened is the takeover of national breweries by Spanish breweries, which have more investment capacity because they pay less taxes in Spain. We do not want to believe that the government will not take into account the importance of this sector, which is responsible for more than 50 thousand jobs, when drawing up the next national budget. With regard to the question you are asking, it is true that the Association has proposed to the government and parties in parliament to seize the opportunity presented by the European revision of the excise duty directive and introduce legislation so that alcoholic beverages with a content of less than 3.5% alcohol could benefit from the IEC/IABA. This happened in 2023 with a tax reduction only for this category (less than 3.5% alcohol). It should be noted that beer offerings with levels below 3.5% are only now beginning to appear in the market.
The Brewers Forum starts in Prague and takes place on 22 and 23 May. What are the top concerns of brewers that you expect to be discussed?
The Brewers Forum is a friendship event: brewers from all over the world will attend this event to share their experiences; experts will share their opinion and analysis of the world. We have topics as diverse as the relationship between beer and marketing, tourism, beer culture, responsible drinking, beer and sport, technology and innovation… All in a unique place in Europe: Prague, probably the city where more independent breweries in the world.
The new trends will certainly mark the Forum. Will non-alcoholic beers become the most outspoken new trend? What’s new in the market that deserves to be featured?
Both low-alcohol and non-alcoholic beers are clearly current trends and will be discussed. But not alone. Another trend is flavored beers.
What growth potential do they have in Portugal and in the Latin markets?
Only about 60% of the Portuguese drink beer sporadically, that is, only the broadening of the consumer base will allow beer to grow in Portugal. But this organic growth will certainly be slow, and what is most noticeable today is the consumption driven by tourism in countries with a larger beer culture, and usually more frequent consumers.
Source: DN
