Drink sector’s €3bn tonic for economy

The drinks industry — specifically pubs, off licences and drinks manufacturers — are contributing nearly €3bn per year to the economy, through necessary outlays.

A spending survey conducted by Tony Foley, of Dublin City University Business School on behalf of the Drinks Industry Group of Ireland covers all kinds of spending from raw ingredients on behalf of drinks manufacturers to wage, entertainment and security bills by pubs and off licences.

With a total of over €2.8bn per year, the report concluded that the drinks sector is responsible for “a far greater” proportion of domestic purchasing than the chemical and technology sectors.

“The drinks industry — both manufacturing and retail — plays a very substantial role in the procurement of inputs, as is apparent from this report,” according to Mr Foley.

European corporate relations director at Diageo Ireland and also drinks industry chairman Peter O’Brien said: “The economic contribution that the drinks industry makes to the Irish domestic economy each year, as detailed in this report, demonstrates the importance of the sector.

“What is particularly significant is the high proportion of investment in domestic services and materials — 62% in services and 42% in materials — worth €800m, and greatly exceeds the domestic content levels of other leading sectors in the country such as the hi-tech and chemical sectors.

“It is apparent that, where the industry can, it is supporting domestic business.

“In addition to purchases, the industry is responsible for 64,000 jobs, over €1bn in exports, €1.8bn tax revenue in VAT and excise and almost €7bn in personal expenditure,” he added.