The Drinks Industry Group of Ireland said 2008 was the worst year in 25 years.
The bulk of job losses are expected to come from pub trade, which accounts for 90 per cent of jobs in the sector.
The group claims that the consumption of alcohol declined by 5.9 peer cent in 2008.
It also claims that despite the large volume of alcohol bought in Northern Ireland and brought to the Republic, there is still a substantial fall in the amount of alcohol people are drinking.
However in spite of this fall, the alcohol market last year was still worth €6.9bn.
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