Beer down 175 million pints since ban

Yesterday marked the first anniversary of the smoking ban in England, and the figures just released by marketing company Nielsen reveal a massive downturn in the sales of beer and spirits, as well as tobacco. In the nine months from July to March, volume sales of alcohol fell 8% in the on-trade in England and Wales, the latter having introduced the smoking ban three months before England.

Prior to the ban, sales were falling at a steady 3%. Last summer’s weather wash out added to this downturn, but Nielsen analysts estimate that just under half of the 8% decline can be attributed to the smoking ban.

Data from a Nielsen survey polled before the ban came into effect showed that 60% of people thought they would be more likely to visit a pub once it was non-smoking, but when this survey was re-polled several months after the ban had been in place, only 45% said they would be more likely to visit now pubs were non-smoking. In fact, 44% of people said they visit licensed premises less often than they did before the ban was in place.

“Nielsen estimates that around 175 million less pints have been drunk in the last year in England and Wales as a direct result of the smoking ban,” said Jake Shepherd, Nielsen’s marketing director. “The winter months were particularly bad,” he continued, “sales fell 9.3% through November to January when smokers would have been reluctant to stand outside in the cold to have a cigarette.”

Conversely, sales of wine have not suffered as much, going from -2% before the ban to -4% since the ban. Shepherd added, “Wine has held up somewhat better than other drinks, probably benefiting from the increasing importance of food and women to the On-trade.  In Scotland we have seen the sales of both tobacco and alcohol (out of home) stabilise during the second year of the ban being in force so we do not expect these decline rates to continue in the long term. Investment into outdoor smoking areas has been considerable and most consumers have now adapted to the change.”

As for tobacco, smokers in Britain bought 2.1 billion less cigarettes in the 10 months from July last year to April 2008. 92% (1.93 billion cigarettes) of this decline was driven by sales in England and Wales with a further 220 million less sticks smoked in Scotland, where the ban was introduced a year earlier.  

The data represents sales in 130,000 on-trade outlets nationwide, and comes from Nielsen’s On Trade Audit, which monitors the sales of alcohol from a nationwide network of pubs, clubs, bars, restaurants, hotels and other premises which hold a license for the sale of alcohol for on-premise consumption.

Alexis Hercules 02/07/08