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.
- Why Scotch must drop the 'malts good, blends bad'
- Pernod's mood darkens over India - Analysis
- Soft drinks is losing the recycling game
- Heineken Q1 2017 by region - results data
- Remy Cointreau Fiscal-2017 sales - results data
- Diageo to cut 105 jobs in Scotland, 50 in Italy
- Scotch sales set to soar, despite recent struggles
- Pernod Ricard posts solid YTD sales jump - results
- Edrington shifts innovation to US in shake-up
- Pernod Ricard YTD fiscal-2017 sales performance
- Global Champagne and sparkling wine insights - market forecasts, product innovation and consumer trends
- Global Scotch insights - market forecasts, product innovation and consumer trends
- Battle of the Generations - The fight for iGen, Millennial, Gen X and Baby Boomer consumers
- Myanmar - ISA Country Report
- Flavoured Powder Drinks in 2017: Confronting an Ageing World