New beer sales figures highlight how glad brewers will have been to see the sunshine over the past few weeks.
The long-term decline in beers sales has continued, with total volumes in the 12 months to the end of June down 4.8% year-on-year to 26.7 million barrels. This is the lowest annual total figure since 1999, the earliest date reported in the British Beer & Pub Association’s quarterly Beer Barometer report, which was released today (26 July). It is the first time annual volumes have fallen below 27 million barrels.
Off-trade sales of beer were 12.8 million barrels – the lowest since 2002 – and were also down 4.8% year-on-year, while on-trade sales fell 4.9% to 13.9 million barrels. Volume sales for the second quarter of this year were down 3.6% in the off-trade on the same period a year ago.
The BBPA said the recent good weather offered the prospect of a more promising third quarter, but claimed the figures showed a need for supportive tax policy from the Government following the two per cent cut in beer duty and abolition of the beer duty escalator.
“The benefits of the beer duty tax cut, and the increased investment that this will bring to the beer and pub sector, will take time to bear fruit,” said BBPA chief executive Brigid Simmonds OBE. “The figures clearly show that the market for one of our iconic products is still very challenging.”
“The ending of the escalator means that next year’s automatic, above-inflation tax increase has been cancelled, and quite rightly. However, the Government should continue to look for ways to help the sector.”
The brewing industry last month launched the Let There Be Beer generic marketing campaign in a bid to reverse the decline in sales and re-invent the image of the sector in the minds of consumers. It will run for at least three years after securing multimillion-pound funding from AB InBev, Heineken, Carlsberg, Molson Coors and SABMiller.
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