Beer production has shrunk mostly due to the economic crisis, which increased unemployment rate, brought down purchasing power and caused a drop in foreign tourists numbers, experts said.

In 2009, the average beer consumption was 67 litre per person, nearly as much as in 2006, said Vladimir Ivanov, Chairman of the Union of Brewers in Bulgaria.

The eight breweries in Bulgaria produced and sold slightly over 50 million hectolitres of beer, which is 11 per cent down from 2008.

In the past few years, the production and consumption of beer grew between 7 and 10 per cent, Ivanov said.

Beer production is expected to shrink 2-3 per cent in 2010, according to experts.

In 2009, Union members exported over 51,421 hectolitres of beer to neighbouring countries, the European Union and the US. Exports are bought primarily by Bulgarian expatriates in these countries.

In 2009, 42.5 per cent of beer in Bulgaria was sold in bottles, and 48 per cent in PET packaging. Draught beer accounted for 5.5 per cent of the beer market, and canned beer for 4 per cent. Some 28 per cent was sold in stores, while 72 per cent, in pubs and restaurants. In Europe, the ratio is 60 to 40.

Some 3,070 people are employed in Bulgaria's brewing industry and the Union hopes that there will be no lay-offs in the sector.

In 2009, brewers invested 66 million leva in the sector.

In 2009, the brewing industry used 100,000 tonnes of malt, of which approximately 50 to 60,000 tonnes were domestic production. Nearly all tops, labels and bottles are produced here too. The same goes for 20-25 per of hops.

Bulgaria has six breweries with eight factories and three small breweries restaurants.

Source: BTA