Accelerating decline in beer sales

28th October 2008, 10:53am

Beer sales have dropped by 7.2% this quarter of the year, compared with the same quarter in 2007, according to the UK Quarterly Beer Barometer, published by the British Beer & Pub Association (BBPA).

In total, 161 million fewer pints were sold in July to September this year compared with the same period in 2007 – a decrease of 1.8 million pints a day. This quarter's fall is the largest third quarter fall for a decade.

Beer sales in pubs, bars and restaurants are down 8.1% over the same period. The on-trade sold 104 million fewer pints during July to September this year compared with the same quarter last year – a drop of 1.1 million pints per day.

These new figures an insight into the impact the credit crunch and looming recession are having on British households.

The BBPA has estimated that the Treasury has collected £138 million less in beer duty and VAT in the six months since the Budget.

Rob Hayward, BBPA chief executive, commented on what needs to be done to help the pub industry: "Sinking beer sales and the record five pubs a day closing is a barometer of the UK economic climate. We're busy responding to the economic challenges of today. But we need greater flexibility. Government needs to be looking to ease the constraints of the tax and regulatory burden on our sector.

"We're not looking for a handout just a hand-up. They must abandon their current plans to increase beer taxes by a third through a new tax escalator. They should also pull back from their current alcohol policy agenda which would introduce even more regulation on how alcohol is produced and sold in Britain."

Weblink: www.beerandpub.com

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