A new report from the Drinks Industry Group of Ireland (DIGI) has found that the Irish drinks industry makes purchases in excess of €2.8 billion each year. These purchases include ingredients, non-industrial services such as IT and marketing; industrial services; and labour costs and wages.
The report, 'Purchases of Inputs by the Drinks Industry', by Anthony Foley of Dublin City University Business School, shows that drinks industry is a very substantial purchaser of inputs.
Wage, salaries and personnel costs are one of the highest inputs, totalling €1 billion per annum, with retail, wholesale and on/off-trade sectors paying €690 million in personnel costs each year and the manufacturing sector paying a further €311 million.
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In addition, the purchase of Irish materials and services for use in drink manufacturing in Ireland is worth €800 million to the domestic economy.
Of the total purchases by manufacturers – €1.558 billion which excludes goods bought for resale – a high proportion of those materials and services are domestically sourced, at 62% and 42% respectively.
The amount spent on materials and services other than food and drink is €583 million, while the amount spent on food purchasing is valued at €243 million. The total value of retail sales is €7 billion.
Commenting on the report, author Anthony Foley said: “The drinks industry, both manufacturing and retail, plays a very substantial role in the procurement of inputs as is apparent from this report. Previous DIGI reports have identified the direct economic benefits which derive from the drinks industry in terms of employment, output, exports and tax revenue and the positive impact, which the sector has on tourism. An industry also contributes to the economy through its procurement from other suppliers.”