Beer sales slide starts to slow - UK Quarterly Beer Barometer
29.07.2009
• Total beer sales down 4.8 per cent
• Pub beer sales down 4.5 per cent
• Supermarket and off-licence beer sales down 5.2 per cent
• Government beer tax revenues down £156 million in the first half of 2009, when compared to the first half of 2008, despite further tax increase
The decline in UK beer sales seems to be slowing, with pub sales falling at a slower rate than supermarket sales, according to the UK Quarterly Beer Barometer published today by the British Beer & Pub Association (BBPA).
The new figures show that UK beer sales dropped by 4.8 per cent in the second quarter of 2009. This is less than the 8.3 per cent fall in the final quarter of 2008 and the 7.8 per cent drop in the first quarter of this year, indicating that the UK beer sector may be on the road to stabilising.
Beer sales in pubs are down 4.5 per cent compared to the second quarter in 2008. Pub beer sales fell 6.3 per cent in the first quarter of 2009 and 9.9 per cent in the last quarter of 2008.
The 4.5 per cent fall means 4.2 million fewer pints were drunk each week in pubs during the second quarter compared with the same period in 2008. In total, 54.6 million fewer pints were consumed in pubs in the second quarter of this year compared with last year.
Supermarkets and off-licence sales are down 5.2 per cent this quarter compared with the same quarter in 2008 – the equivalent of 4.2 million pints each week. Beer sales in supermarkets and off-licences have now fallen at a faster rate than sales in pubs for two consecutive quarters.
These latest figures are further bad news for Government tax returns. Government tax revenues from beer for the first half of the year are estimated to be down £156 million compared with the first six months of last year.
David Long, BBPA Chief Executive, comments:
“Whilst welcoming a slowing of the decline in beer sales, we are wary about reading too much into these early signs. However, the new figures give some ground for cautious optimism that some speck of faint light may be appearing at the end of the tunnel.
“Consumer spending on beer remains constrained in both pubs and supermarkets. Considerable economic uncertainty remains about the short and medium term. We must therefore remain careful not to take too much from what are still disappointing figures.”
Dr Long also highlighted the potential benefits for the wider economy of growth within the beer industry.
“The British beer and pub trade employs considerable numbers of people across the country, jobs that are vital to communities everywhere. We have the potential to be a strong engine of recovery for the wider economy and deliver benefits to communities, to tourism, to jobs and to Government revenues. We urge the Government to recognise this, reflect and reconsider its current plans for a VAT increase in January and a further beer tax increases in next year’s Budget.”
Notes to Editor
1. The British Beer & Pub Association is the UK’s leading organisation representing the brewing and pub sector. Its members account for 98 per cent of the beer brewed in the UK and own nearly two thirds of Britain’s 54,000 pubs.
2. The BBPA has a long-established and authoritative reputation for the publication of statistics on the UK’s brewing and pub sector. The BBPA’s Beer Barometer, published for the first time in July 2008, will generally be available within one month of quarter-end. Data is sourced directly from the Association’s brewing members, and accounts for 95 per cent of all beer sold in the UK.
3. Beer duty was increased by 2 per cent in the April 2009 Budget. In the previous year there was a 9.1 per cent increase in the Budget in March 2008, and a further increase in beer duty of 8.0 per cent was announced in the Pre-Budget Report in November 2008. The total increase since March 2008 is 20.1 per cent.
4. Tax revenue figures are based on HMRC duty revenues. HMRC data shows that in the first six months of 2008 the Treasury raised £1,467 million in beer duty revenue, as well as £1,208 million in VAT from beer sales. In the first six months of 2009 the Treasury raised £1,487 million in beer duty revenue, and £1,032 million in VAT from beer sales, a fall in revenue of £156 million.
5. UK Quarterly Beer Barometer tables follow, which are also available in excel format on the BBPA website at the link below.
6. Additional UK beer market statistics for subscribers are also available for purchase from the British Beer & Pub Association.
Annual Barrelage Survey: Running since 1971, the latest 2008 edition includes a detailed breakdown within the on-trade and off-trade of all the main product types of beer, by packaging format and by strength bands. The report includes charts showing the key trends over the last 20 to 30 years and a full set of data tables covering trends over the last five years.
UK beer market monthly survey: This is the most timely and accurate measure of the monthly trends for the key categories within the UK’s £18 billion beer market. The monthly survey will usually be made available to subscribers within a month of the previous month’s end. Monthly volume data is available for the total market, for the on-trade and off-trade, and within these channels for standard lager, premium lager, standard ale, premium ale, and stout. For the on-trade, data is also available for premium packaged lager, premium draught lager, standard cask ale and premium cask ale. In the off-trade, additional data is available for bottled ale and canned ale. For ease of use, the data will be provided in an excel spreadsheet.
For further information contact:
Mark Hastings
Director of Communications
mhastings@beerandpub.com
Tel: 020 7627 9151 / 07784 181794