UK: Beer market shrinks more slowly - figures

The UK beer market shrank at a slower rate in the final three months of 2009, official figures show.

Beer sales by volume fell 3.6% for the three months to the end of December, compared to the same period of 2008, trade body the British Beer & Pub Association (BBPA) said today (28 January).

It heralded the figure, which is the lowest fourth quarter fall since 2006, as a sign that the sector is emerging from a "recessionary slump". The UK economy officially moved out of recession in the same quarter.

"As the economy moves into recovery, so will the beer and pub sector," said BBPA chief executive Brigid Simmonds. "In fact, as in previous recessions, it may emerge first and fastest."

Beer volumes for the whole of 2009 fell by 4.2%, against a 5.5% decline in 2008.

UK beer volumes slipped by just 0.8% in the third quarter of 2009, to the end of September, but this followed steeper falls of 5% and 8% in the first and second quarters respectively.

In the final quarter, the on-trade continued to perform worse, with volumes down 5%, against an off-trade that saw a 2% drop. 

Simmonds said she was cautious on recovery, particularly following duty tax rises on beer over the last 18 months.

"It’s too early to say whether these indicators of fragile recovery will turn into a trend, particularly when we await to see the impact of shocks such as the VAT increase and big freeze of this month."

Some brewers have performed well above the industry trend in 2009. Greene King, which brews Old Speckled Hen and Abbot Ale yesterday reported beer volumes up 7% in the 38 weeks to 24 January.