BBPA Claims Positive Signs Despite Beer Sales Slump

Thu, 28 Jan 2010

New figures from the British Beer and Pub Association (BBPA) have revealed the biggest decline in off-trade beer sales in over thirty years. Off licences and supermarkets suffered a 3.1 per cent fall in their sale of beers during 2009, the largest decrease since records began in 1978. There was even worse news for the British pub industry, which saw a 5.2 per cent reduction in beer sales, leaving overall beer sales down by 4.2 per cent.

Despite the seemingly downbeat outlook, the BBPA’s chief executive, Brigid Simmonds, said the figures showed signs of recovery for the UK pub and off-trade industries. Total sales, which include the sales of other drinks such as spirits and wine, were down by 3.6 per cent, though this was the smallest fourth-quarter decline since 2006.

However, there are further hurdles for pubs, as well as off licences and supermarkets, with the VAT Increase and poor winter weather likely to harm January sales, while further taxes on drinks containing alcohol would be ‘very damaging’ according to Ms Simmonds.

As a result of the lower sales, beer tax revenues actually fell by £258 million to £5.3 billion in 2009, despite a 21 per cent increase in duty.
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