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News
UK beer sales slump
The gap between UK beer sales in the on-trade and the off-trade has continued to widen, according to new figures released by the British Beer and Pub Association (BBPA).
In 2010, on-trade beer sales dropped 7.5%, with pubs selling 333 million fewer pints than they did in 2009.
Off-trade beer sales, meanwhile, rose by 0.6%, meaning that total beer sales were down 3.9% year-on-year.
The 2010 slump is part of a prolonged decline with on-trade sales falling 20.2% in the last three years.
Brigid Simmonds, the BBPA’s chief executive, cited over-excessive duty as a reason for the slump and pointed out that the drop in sales represented £257m in lost tax revenue.
“Huge tax rises are having a big impact on beer sales. The government should abandon plans for above inflation hikes in beer tax in the Budget, as further rises are simply unsustainable.”
She added: “Beer has always been a rich revenue source for the government – but they may now be cooking the golden goose.”
“With beer the core seller in pubs, the government needs to pursue more pub-friendly tax policies,” she said. “This would create a win-win situation, with a boost for lower-strength, pub-based drinks like beer, and more revenues for the Treasury.”
Ben McFarland, 28.01.2011