Beer producers raise a glass as consumption rises

Beer consumption rose for the first time in a decade in Ireland last year as more drinkers joined the craft beer revolution.

A new report from the Irish Brewers Association (IBA) shows consumption jumping 4 per cent in 2014, the first increase since 2005.

The study shows beer remains the country’s favourite alcoholic beverage, accounting for 47 per cent of all alcohol consumed in Ireland last year compared to 27 per cent for wine, 18 per cent for spirits and 8 per cent for cider.

However, while more Irish drinkers are increasingly taking to supping locally-produced brews, beer exports declined by 7 per cent last year, from 50 per cent to 43 per cent

Alcoholic beverage exports were valued at €1.2 billion in 2014, with beer exports accounting for 19 per cent or €228 million of the total value.

The report shows that the craft beer revolution continues unabated with the output of microbreweries rising from 26,000 hectolitres (hl) in 2011 to an estimated 71,000 hl last year.

At the same time, microbreweries’ market share rose to 1.2 per cent from 0.6 per cent. It is estimated that there are now 33 microbreweries operating in Ireland, the majority of which are engaged in producing their own beers. Output of microbreweries is up 63 per cent since 2011 and as many as 40 per cent of these are now actively exporting.

The report shows that the brewing industry in Ireland produced over 7000 million litres of beer last year. In addition, it reveals that direct employment in the sector has risen by 8 per cent due to ongoing investment by the sector and new product development.

While lager remains the most popular beer, the numbers drinking it declined slightly last year from 65.4 per cent to 63 per cent. The study shows a higher percentage of consumers drinking stout - up from 29.2 per cent to 31.1 per cent, and ale - up from 5.4 per cent to 5.9 per cent.

According to the latest report, beer excise contributed €425 million to the exchequer in 2014, which the association said was due to the large 42 per cent duty increase over the past three years. Ireland currently pays the third highest rate of beer excise in the EU behind Finland and the UK, and it is 11.4 times the rate in Germany.

The IBA called on the Government to support the sector by reducing the excise burden in the Budget.

“Beer was hit with a 42 per cent excise increase over the past three years, making our beer excise the third highest in the EU. In the UK, 26,000 jobs have been created since 2013, due to a cut in beer duty. The potential for Ireland’s brewing industry is massive if excise is reversed,” said Jonathan McDade, head of the IBA.