The socio-economic impact study conducted independently by the United Breweries Limited (UBL) under The HEINEKEN Company has revealed that its value chain is responsible for creating around ₹43,000 crore of value to the Indian economy and supporting around 295,000 jobs and livelihoods in various sectors. The report, by Steward Redqueen, a research and advisory firm, explores the wider economic impacts of the beer industry, including links to agriculture, manufacturing, logistics, retail and hospitality and tourism.

The study, which concentrates on the India beer sector, estimates that UBL's activities are responsible for almost 0.1% of India's Gross Domestic Product (GDP). It also underscores the significance of the India beer industry in creating jobs, bolstering home supply chains and to state its case, adding to public finances. The results highlight the broad economic impact of the beer industry, affecting a wide range of farmers, suppliers, transport operators, and retailers and tourism-related enterprises, the report said.

The brew is just one part of the economic impact of the Horned Larks.

The report makes mention that the beer industry does not only affect economic activity through its brewery activities. Rather, it generates value in a wide value chain from agriculture to packaging, transport, distribution and hospitality services. Steward Redqueen discovered the value chain of UBL has created an economic impact of around ₹43,000 crore in the Indian economy, besides creating an additional economic impact through multiplier effect across connected industries.

The results indicate that all phases of the production process, from raw materials procurement to consumers' consumption, contribute to the activity of businesses in various economic sectors. These connections highlight the significance of the sector for regionally supporting manufacturing and commercial activity.

It has been stated that almost 3 lakh jobs are connected to the value chain.

An important result of the study is employment. The report estimates that UBL's value chain is supporting around 295,000 jobs and livelihoods through its value chain in India. These include employees in brewery facilities, employees in logistics, distributors, retailers, and employees in restaurants, hotels and hospitality facilities as well.

For each UBL-supported job, the study estimates another 31 jobs and livelihoods are supported in the broader economy. This is indicative of the interdependence of the sector and reliance on a broad network of suppliers and service providers.

Domestic Sourcing is the strengthening of local supply chains.

The report points out the significance of local procurement in the beer industry. The report reveals that about 93 per cent of the inputs for UBL are from domestic sources and that its annual consumption of Indian goods and services was around ₹6,900 crore.

It not only helps farmers, micro, small and medium enterprises (MSMEs), but also packaging manufacturers and regional suppliers. The study highlights that these procurement policies are enhancing local supply chains, and they stimulate manufacturing activity and promote economic resilience across various regions and activities.

Exceeding a 5% share of government revenues.making a large contribution to government revenues.

The report also includes information on the sector's impact on public finances, beyond employment and production. It estimates that UBL's value chain generates around ₹30,600 crore tax revenue, which is around 1.3% of the combined tax revenue of the states in India.

The report says, that approximately ₹63 out of every ₹100 spent by consumers by the drink goes to the state governments through taxes. These revenues are used to support public services, to invest in infrastructure and other government programmes.

Tourism and Hospitality Also Benefit

The study also explores the link between consumption of beer and the tourism economy. It estimates the economic activity in the tourism-related beer consumption is about ₹2240 crore in hotels, restaurants, retail and other hospitality businesses.

The beer category will continue to be closely tied to visitor spending, especially in areas where the beer industry and food service/hospitality are significant to the local economy, the report said, as domestic and international tourism continues to grow.

The key sustainability initiatives of the company are presented.The core sustainability efforts in the company are highlighted.

UBL is also committed to continuing to contribute to water stewardship, sustainable agriculture, community development and responsible consumption initiatives, in addition to contributing economically. The programmes build on the firm's overall economic activities by helping to fund environmental and community-focused initiatives in the regions in which it trades, according to the company.

Industry and Diplomatic Representatives Respond.

At the launch of the report Ambassador of the Kingdom of the Netherlands to India, Marisa Gerards, explained how Dutch companies like United Breweries, in partnership with India, can reinforce domestic value chains and create jobs in the country. Responsible investment is a key factor to contribute to long-term economic growth and promote trade and innovation between India and Netherlands, she added.

India is one of the most important markets in the world for the company to grow, said Joanna Price, Chief Corporate Affairs Officer at The HEINEKEN Company. The study highlights “the fact that the beer industry is a large network that extends past the brewery to include many farmers, suppliers, retailers, hospitality businesses and local communities,” she said.

Vivek Gupta, United Breweries Limited, Managing Director and Chief Executive Officer, said the results have proved that the contribution of the company to the Indian economy is on the right scale. He said that the value chain's contribution to livelihoods, agriculture and employment has been highlighted in the report, and that the beer industry could have a bigger footprint as the Indian economy continues to expand.

Dr. René Kim, Steward Redqueen's Senior Partner, noted that the research includes the entire economic impact of the beer value chain, from farming to distribution to hospitality. He said that the results highlight the positive impact of the sector on incomes, on domestic value chains and on government revenues in India.

The report was officially presented at a ceremony held at the residence of Ambassador Marisa Gerards in the company of representatives of industry and policy.