Domestic sales by members of the Finnish Federation of the Brewing and Soft Drinks Industry 1 January - 30 September 2009
Increased alcohol taxation boosts beer sales
Overall beverage sales were favourable during the summer. In the January-September period, beverage sales grew by 1.9 per cent on the previous year. The rise in alcohol taxation that came into force at the beginning of October increased beer sales at the end of September in particular. Stores stocked up on beer at the old tax rate. Beer sales rose by 5 per cent and long drink sales by 14.2 per cent, while sales of ciders and non-alcoholic beverages fell.
According to the Federation of the Brewing and Soft Drinks Industry’s statistics, a total of 632.5 million litres of beer, cider, long drinks, soft drinks and mineral waters were sold by the end of September. Compared to the corresponding period of last year, this represents growth of 11.9 million litres or 1.9 per cent.
Beer sales picked up to reach a growth rate of 5 per cent by the end of September. During the January-September period, beer sales totalled 323.8 million litres, which is 15.3 million litres more than in 2008. Statistics on volume sales from breweries to stores clearly reflect the 10 per cent rise in alcohol taxation that occurred at the turn of the month: stores stocked up on beer at the old tax rate.
By the end of the third quarter, long drink sales rose by 4.0 million litres, while sales of ciders fell by 3.3 million litres. A total of 32.5 million litres of long drinks were sold, representing a rise of 14.2 per cent on 2008. Cider sales totalled 25.5 million litres – a fall of 11.5 per cent.
Soft drink sales totalled 204.1 million litres. At the end of September, soft drink sales were at about the same level as in 2008 with a change of only –0.1 per cent. Sales of mineral waters decreased by 4 million litres to 46.5 million litres, representing a fall of 7.9 per cent on last year.
“The brewing industry is under pressure from all sides – continual rises in alcohol taxation, increased private imports by travellers, a highly competitive market, and now a significant increase in taxation on soft drinks in the government’s proposed budget. Business conditions have narrowed in the brewing industry, which is a significant employer and taxpayer in Finland. The industry has over 2,000 direct and over 30,000 indirect employees throughout its production and distribution chain,” says Tero Kallio, Managing Director of the Federation of the Brewing and Soft Drinks Industry.
“The industry’s favourable impact on employment would be even greater, if a higher percentage of beer were consumed in bars and restaurants. On-trade sales currently account for under 18 per cent compared to the European average of 40 per cent,” Kallio adds.
DOMESTIC SALES JANUARY - SEPTEMBER 2009
Member companies of the Federation of the Brewing and Soft Drinks
Industry. The statistics do not include sales by actors outside the
Federation, nor private imports of brewery products, which are not
Communications Manager Katri Tuulensuu, tel. +358 (0)9 1488 7601, GSM +358 (0)40 777 1938
Managing Director Tero Kallio, tel. +358 (0)9 1488 71
The Federation of the Brewing and Soft Drinks Industry promotes the interests of producers of beer, cider, long drinks, soft drinks and mineral waters in Finland. Its members are Oy Hartwall Ab, Nokian Panimo Oy, Olvi Oyj and Oy Sinebrychoff Ab. The Federation of the Brewing and Soft Drinks Industry operates in connection with the Finnish Food and Drink Industries Federation and is among the four largest industries in the food and drink branch in terms of the value of production.