Beer sales plummet by 1.2 million pints a day

July 25, 2008: Beer sales are down 4.5% this quarter, compared with the same time last year, according to the British Beer & Pub Association (BBPA).

Its UK Quarterly Beer Barometer reports that 107 million fewer pints were sold in April to June this year compared with the same quarter in 2007 — a fall of 1.2 million pints a day.

Beer sales in pubs, bars and restaurants are down 10.6% over the same period. The on-trade sold 144 million fewer pints during April to June this year compared with the same quarter in 2007 — down 1.6 million pints a day.

The BBPA estimates that the Treasury has collected £88 million less in beer duty and VAT than in the same period last year.

Off-trade sales, in supermarkets and shops, have continued to rise, however, with a 3.8% increase on April to June 2007, confirming a long-term trend towards drinking at home.

Over the first half of 2008 beer sales are down by 2.9% compared with the same period in 2007 — sales in pubs, bars and restaurants are down 9.6%, while sales in supermarkets and off-licences are up 7.4%. Total beer sales in 2007 were 3.9% down on sales in 2006.

BBPA chief executive Rob Hayward said: “Beer sales are on the slide and the tax increase in the Budget has made it worse. This is hitting Britain’s brewers and pubs hard.

“It’s also creating a large hole in the Chancellor’s pocket, with the Treasury’s tax take also down. This must call into question the Government’s planned beer tax escalator. Where’s the logic in taxing more when you’re taking less?

“With around one million jobs reliant on the trade, the loss of 1.6 million pints a day is having a serious impact, not just on the sector itself, but on the UK economy as a whole. Beer sales in pubs are now at their lowest level since the Great Depression of the 1930s — down seven million pints a day from the height of the market in 1979.

“We’re trying to manage a faltering economy, falling consumer spending and escalating costs on everything from raw material to fuel. The last thing we need is another tax increase.

“We need a change of approach from the Government. Brewing is a major industry, beer our national drink and pubs a treasured part of our national culture. Yet with further duty increases planned, the Treasury continues to see the brewing industry as a ‘cash cow’ to be milked in future budgets. These falling tax revenues show that it’s time for a rethink.”