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Beer sales could be improving, says BBPA

28th January 2010, 8:44am

UK beer sales could be shaking off the recession, says the British Beer & Pub Association (BBPA).

UK beer sales are showing signs of lifting out of the recessionary slump, according to the BBPA's latest UK Quarterly Beer Barometer.

Figures show that total sales – pubs and supermarkets – for the last three months of 2009 fell by 3.6%, the lowest fourth quarter fall since 2006.

Sales for the whole of 2009 fell by 4.2%, compared with 5.5% in 2008. Sales in pubs, bars and restaurants were down 5% in the final three months of 2009 compared with the same period in 2008 – the lowest final quarter fall since 2006. Sales for the whole of 2009 were down 5.2% – an improvement on the 9.3% slump in 2008 and 6.5% fall in 2007.

Despite signs of stabilisation within the sector, these declines are still having a significant effect on Government revenues. Income from beer tax in 2009 is down £258 million compared with 2008, despite duty rates being considerably higher.

Brigid Simmonds, BBPA chief executive, commented: "These figures show a sector starting to claw its way out of a recessionary slump. They also signal the most significant driver of problems in the pub sector over the last 12 to 18 months has been the down turn in the economy and the slide into recession, along with duty increases of over 20%. As the economy moves into recovery, so will the beer and pub sector.  In fact, as in previous recessions, it may emerge first and fastest."

She added: "However, it's too early to say whether these indicators of fragile recovery will turn into a trend, particularly when we await to see the impact of shocks such as the VAT increase and big freeze of this month."


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