UK beer sales steady as alcohol consumption falls

UK beer sales are showing signs of gradual recovery as sales in the fourth quarter of 2009 revealed the lowest fall in sales in the last two years.

The British Beer & Pub Association’s (BBPA) latest UK Quarterly Beer Barometer shows that total sales in pubs and supermarkets for the last three months of 2009 fell by 3.6%, the lowest fourth quarter fall since 2006.

Sales in supermarkets and shops were down by 2.1% compared to a 6.4% drop in 2006. Hardest hit were sales in pubs, bars and restaurants which were down 5% in the final quarter of 2009 compared with the same period in 2008.

In the year as a whole, however, off-trade sales fell by 3.1% – the largest fall since records began in 1978. 



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


Brigid Simmonds, BBPA chief executive, said: “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 downturn 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.”

Simmonds added that it was too early to say if these indicators would lead to a trend in recovery and the impact of shocks such as the VAT increase and big freeze this month were yet to be seen.

“What is certain is that any recovery could be thrown off course and destabilised by government intervention on tax or regulation,” she said.

”What is equally certain is that any move by the government to increase beer tax further this year would be very damaging and place pubs and jobs at greater risk.”

The report coincides with the release of figures from the Office of National Statistics (ONS), which appear to show that the average Briton is drinking less than in previous years.

Middle class professionals were still found to drink slightly more than people with lower incomes with 13.8 units per week compared to the latter’s 10.6 units.

The buying of alcohol in off-licences fell from 37% in 1998 to 27% in 2009. However, the report suggests that consumption at home and in bars and restaurants has risen over a similar time frame.

There was a steady increase in people buying alcohol from supermarkets, rising from 25% in 2008 to 29% in 2009.

The ONS figures also showed that people were more likely to order alcohol in a restaurant, with a rise from 57% in 1998 to 62% in 2009.

Commenting on the latest ONS figures, Wine and Spirit Trade Association chief executive Jeremy Beadles said: “Today’s government figures confirm the continued fall in overall alcohol consumption in the UK and reflect changing consumer tastes around Europe with more people drinking at home and a preference for drinking alcohol with a meal in a restaurant.”

Rupert Millar 28.01.2010