Volume sales of beer have crashed in Scotland following a ban on bogofs and other multibuy alcohol deals.
In the first four weeks of the ban, which came into force on 1 October, off-trade beer sales fell 14% by volume in Scotland compared with the same period a year ago, according to exclusive data for The Grocer [Nielsen 4w/e 29 October]. This was against a decline of just 3% in England and Wales over the same period.
The decline is a blow for an already struggling industry that has seen year-on-year beer sales decline 4% by volume in England and Wales and 3% in Scotland [Nielsen 52w/e 1 October] - where over 60% of beer is sold on deal.
The ban also took its toll on beer value in its first four weeks, with SymphonyIRI data revealing a 7% decline in beer sales - or a £24m slide - in BWS outlets to £334m.
The ban came into force following an amendment to The Alcohol (Scotland) Act 2010 designed to outlaw “irresponsible promotions” in supermarkets. Key changes included a ban on all “quantity discounts” including bogofs and similar multibuy deals - meaning all multipacks must now be sold for the equivalent price of all the individual items.
The dramatic slump comes despite retailers employing tactics to mitigate the impact of the ban. Some retailers have switched from multibuys to save promotions of equivalent value on certain brands. For example, following the ban, a ‘2 for £18’ multibuy promotion on a 10-pack of Stella Artois in Sainsbury’s in England was sold as a save-amount deal for ‘Now only £9’ in Scotland.
Overall, the total number of promotions has remained broadly flat since the ban was passed, moving from 1,066 to 1,178 [BrandView w/e 25 September versus w/e 20 November], but the promotional mechanics have shifted dramatically. While supermarket multibuys have disappeared from the figures, the number of products on price reduction promotions over the same period has rocketed from 753 to 1,178.
These measures failed to prevent the volume falls, with wine sales volumes also 6% lower in Scotland since the ban.
Major brewers were reluctant to discuss the figures, but alcohol awareness campaigners welcomed the news. “Though it’s too early to say with certainty, these figures do apparently confirm what campaigners have been saying for some time - price and availability of alcohol make a real difference to consumption, and will have to be tackled if the government wants to reduce alcohol harm across the UK,” said a spokesman for Alcohol Concern
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