The latest figures from the BBPA for beer sales have produced very different reactions: the BBPA celebrates the growth in volumes, and urges a continued freeze in beer duty; the ALMR, in contrast, is concerned about the pace of the decline in pub sales of beer, and urges Government to level the playing field with the off trade.
BBPA: brewers toast continued growth in volumes, as positive impact of Beer Duty cut continues
British beer sales have increased for two consecutive quarters – the first time in 10 years – according to the latest quarterly ‘Beer Barometer’ figures from the British Beer & Pub Association (BBPA). The increase in sales follows the Chancellor’s cut in Beer Duty in last year’s Budget – and strengthens calls for a duty freeze in the March Budget, says the BBPA.
Overall beer sales rose by 0.8 per cent in the quarter, some 15.3 million extra pints on the same period in 2012. Beer sales in pubs declined at a lower rate, falling by 2.2 per cent. Sales in the off-trade continued to grow, with the final quarter increase of 3.9 per cent contributing to 2013 off-trade sales beating 2012 levels.
Brigid Simmonds OBE, Chief Executive, comments:
“These figures demonstrate that cutting beer duty helps increase beer sales, stimulates industry investment and saves jobs.
“We hope the Chancellor takes note and freezes beer duty in his next Budget to give a further boost to British beer and pubs.”
ALMR urges Government to address declining on trade beer sales
Responding to the publication of today’s BBPA Beer Barometer, which shows pub beer sales down for the fourth successive quarter and a second successive quarter of growth in the off trade, the ALMR called on the Government to act to create a level playing field for pubs and bars.
The figures show that the Government’s decision to scrap the Beer Duty Escalator has failed to translate into increased sales and consumption in the on trade, with the volume of beer sold continuing to fall.
ALMR Strategic Affairs Director, Kate Nicholls commented:
“There is little surprise that beer sales in pubs have once again fallen – this is part of a long term trend – the shock is how far, how fast and where those sales are going. The Great British public clearly hasn’t lost its appetite for beer, but not at the prices the pubs have to charge.
“There is no doubt that customer tastes and preferences for what and where they drink are being driven by a toxic shock of heavy regulation and extra taxation which makes pubs simply uncompetitive compared to the off trade.
“Supermarkets are using their tax-free food to subsidise loss-leading and pocket money pricing of alcohol.”
Commenting on pub trading generally, Nicholls continued:
“The sector as a whole had a really positive second half to 2013 and a bumper festive trading period. Collective like-for-like sales in food-led outlets were up almost 6% in terms of food and 3% for drink. A drop in beer sales doesn’t necessarily mean that customers are not willing to go out and spend and pubs and bars remain a great value, high quality informal dining experience. Our modern industry is about far more than just beer and Government policy for pubs and the high street needs to be broader than just beer duty.