IRELAND: On-trade "crisis" as pub sales drop by a third
The economic downturn has badly affected Ireland's pubs
Ireland's on-trade is "in crisis", the country's drinks lobby has warned, after new figures showed sales in the channel have dropped by a third since the recession.
On-trade volumes declined by 8.2% in the first seven months of this year, according to figures from the Drinks Industry Group of Ireland (DIGI), with sales volumes down 34% since pre-recession 2007. The spluttering domestic economy and continued pressure on discretionary income drove the decreases, DIGI said.
The trade body warned yesterday (3 September) that more jobs in the sector are likely to be lost and called on the Government to resist EU pressure to hike excise tax. “The pub sector is in crisis,” said Donall O’Keeffe, secretary of DIGI and CEO of the Licensed Vintners Association.
“The losses that are being experienced year-on-year, month-on-month, simply cannot be sustained. In the short- to medium-term there is absolutely no sign of market conditions improving for the on-trade. Rather, the likelihood is that current trends will continue forcing many publicans out of business and thousands of subsequent job losses.”
The European Central Bank, International Monetary Fund and European Commission have all backed excise increases in Ireland's upcoming budget, but DIGI warned that the drinks sector cannot sustain them.
“(The increases) would further weaken the on-trade and independent off-trade in particular while also running contrary to efforts to boost tourism, consumer spending and supporting jobs,” said DIGI chairman Kieran Tobin.
The latest data was compiled by Dublin City University Business School on behalf of DIGI.
It showed total consumption declined by 3.2% in the first seven months of this year, with decreases across beer, wine, spirits and cider.
Bar sales volumes declined 8.2% and bar sales value fell by 7.3% in the same period.
DIGI said bar volumes for July were 11.7% lower than a year prior, in stark contrast to recent overall retail figures for the month, excluding the motor trade, which showed a 1.1% increase.
- Analysis - Storm clouds lift over Diageo Towers
- Where Beer is Brewed Can Leave a Bad Taste
- Focus - Edrington's FY Performance by Brand
- Analysis - Cider's Campaign Gains
- Comment - What on Earth is a Liqueur?
- Former Bacardi exec takes De Kuyper CEO role
- Pernod Ricard appoints Absolut Vodka VP
- Beam Suntory to re-package Courvoisier Cognac
- TWE, Pernod hail China-Aus FTA
- Brown-Forman looks to raise US$500m
- Global liqueurs insights - market forecasts, product innovation and consumer trends research
- The IWSR Company Profile 2014 – Remy Cointreau
- Diageo plc (DGE) - Financial and Strategic SWOT Analysis Review
- Global Tequila insights - market forecasts, product innovation and consumer trends research
- Beer, 2014 and the future