Pub beer sales drop by 8.8%, says BBPA

21st May 2010, 8:42am

Pub beer sales fell by 8.8% in the quarter and overall beer sales were down by 5.1% on the first quarter of 2009, according to the latest UK Quarterly Beer Barometer.

The exceptional and severe weather in January, which prevented many from going to the pub, was the major contributor to the fall in sales.

The BBPA is asking the Government not to increase pressure on the sector unnecessarily by increasing beer taxes in the Budget on 22 June.

However the year-on-year change in beer sales is improving – the rate of decline easing to 3.5% in the year to March 2010 from 4.2% in the year previously – indicating that there are some signs of  an underlying improvement in the sector. 

The five per cent increase in Beer Duty in the 2010 Budget came into effect as the quarter was ending, with fears that an effective increase of 8 pence per pint is likely to have a further depressive effect on future beer sales. The tax increase put a further cost burden of £161 million on the sector, at a time when many pubs are struggling.

The 8.8% fall in pub beer sales means that 6.9 million fewer pints were drunk each week during January, February and March compared with the same period in 2009 – a loss in volume that leaves many pubs under continued pressure.

Brigid Simmons, BBPA chief executive, said: "We are looking for a new Government to approach the issue of beer taxation with a fresh pair of eyes.  Both the Conservatives and Liberal Democrats have stated that beer taxation needs reform and pubs need support because of their value to communities.  It's time to deliver on those promises.

"As a first step we are looking for the Government to abolish the beer tax escalator.  Secondly, if the Government does put up VAT we are looking for a compensatory reduction in beer tax.  This would be a targeted measure to help pubs, because over half of beer sales are in pubs and 60 per cent of drink sales in community pubs are beer."

Related Articles:

• 23 Jan 2012 - Beer sales continued to decline in 2011, finds latest UK Beer Barometer
• 14 Dec 2011 - New BBPA chairman appointed
• 18 Jul 2011 - BBPA introduces unit awareness poster campaign
• 04 May 2011 - New director of public affairs at British Beer & Pub Association
• 27 Apr 2011 - The decline in pub sales has slowed, says BBPA
• 16 Mar 2011 - A total of 25 pubs are closing every week, says BBPA
• 09 Mar 2011 - New alcohol consumption figures prove the need for beer duty freeze, says BBPA
• 19 Jan 2011 - Beer taxes already among highest in the world, warns BBPA
• 01 Oct 2010 - BBPA meets with Home Office on Licensing Law change
• 30 Jul 2010 - Hike in beer sales thanks to World Cup and good weather
• 08 Jul 2010 - Hospitality Industry calls on government for fairer rules to tackle competition from supermarkets
• 02 Jul 2010 - BBPA scoops top prize at Trade Association Forum Best Practice Awards
• 22 Jun 2010 - Emergency Budget – Pub industry applauds decision to freeze beer tax
• 15 Jun 2010 - VAT rise in Budget could hit beer and pubs hard, say experts
• 02 Jun 2010 - BBPA issues guidance to pubs for World Cup
• 04 Feb 2010 - Pubs are still closing but at a slower rate, says BBPA
• 28 Jan 2010 - Beer sales could be improving, says BBPA
• 29 Oct 2009 - Beer sales slide continues to slow

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