Drinks industry milking its success

Punters across Ireland are drinking more than half a billion pints of milk a year, it has emerged.

The country’s drinks industry revealed it also ploughs more than €1bn into the economy each year on materials, goods and services.

A new study – the first of its kind in the state – showed that it also pays out €250m in wages and salaries, and has invested an average of €123m annually over recent years.

The report calculated the value of inputs purchased by the drinks industry, identifying the industry’s economic impact.

“The study demonstrates importance of a vibrant drinks manufacturing, processing and retail business to the Irish economy,” said Michael Patten, of the Drinks Industry Group of Ireland (DIGI), the representative body for the drinks industry in Ireland.

The study showed that annually the drinks industry buys €375m in materials, €46m in industrial services; and €393m in non industrial services such as advertising, postal, IT and telecommunications services.

More than 260,000 tonnes of barley and 60 million gallons of milk were also purchased, with €105m spent on purchases from farmers.

The milk is used in the ingredients of some drinks, such as Baileys, as well as sold over the counter in pubs.

Goods (not including goods bought for resale without processing) bought came to the value of euro €841m, while €300 was paid out in total labour costs, including payroll taxes and pensions.

“This is the latest in a series of studies which have examined the economic importance of the industry in Ireland,” added Mr Patten.

“It again demonstrates the huge contribution made by the industry to the broader economy and its critical role as employer, exporter, purchaser and exporter. The drinks industry is a key part of our economy and an unrivalled success story at home and internationally.”

The study, commissioned by DIGI, was undertaken by Anthony Foley of the Dublin City University Business School.