UK: Off-trade beer sales bounce back in Q1

By James Wilmore | 29 April 2013

On-trade beer sales fell in Q1

UK off-trade beer sales have recovered in the first quarter of this year but the on-trade took a hit, latest figures show.

Overall category sales fell by 2.9% in the first three months of 2013, the British Beer & Pub Asscociation said today (29 April). Off-trade sales were flat year-on-year, after a 7.5% drop in the last quarter.

But on-trade sales continued to dive, down by 5.5% in the first quarter. Sales in the previous quarter fell 4.8%.

The BBPA blamed the UK's long winter weather for the impact on the pub trade. It also said that the three-month period only covered one week of the government's cut on beer tax and scrapping of the duty escalator, announced in last month's Budget.

"We would hope to see the benefits in second quarter sales, where brewers, pubs and pubgoers will see beer tax rates at nearly 7% lower than they were due to be," said BBPA chief executive Brigid Simmonds.

Expert analysis

Beer in the United Kingdom

In 2011 beer sales remained weak due to the ongoing and growing consumer concern about government spending cuts on jobs and incomes, which continues to constrain consumer spending. Total volume sales of beer declined by 5%, a more dramatic decline compared to the previous year and slightly sharper than the review period total volume CAGR. This was due to ongoing beer tax increases in March, with beer seeing excise duty increased two percentage points above the level of inflation at 5%. This tax...

Sectors: Beer & cider