The decline in UK beer sales showed signs of slowing, with total sales down 4.8% in the second quarter of 2009, significantly less than the 7.8% drop in the first quarter of this year, according to the British Beer & Pub Association (BBPA).
The latest figures from the BBPA’s Quarterly Beer Baromoter found that pub sales were falling at a slower rate than supermarket and off-licence sales for two consecutive quarters, with on-trade beer sales down 4.5% compared with 5.2% in the off-trade.
The data showed an improvement for falling beer sales in pubs compared with a 6.3% drop in the first quarter of 2009 and a 9.9% decline in the last quarter of 2008.
The BBPA said that while the figures indicated that the UK beer sector may be on the road to stabilising, it still showed that 4.2 million fewer pints were drunk each week in pubs during the second quarter of this year compared with 2008.
It estimated that government tax revenues for the first half of the year were down £156m compared with the first six months of last year.
David Long, BBPA chief executive, said: “Whilst welcoming a slowing of the decline in beer sales, we are wary about reading too much into these early signs. However, the new figures give some ground for cautious optimism that some speck of faint light may be appearing at the end of the tunnel.
“Consumer spending on beer remains constrained in both pubs and supermarkets. Considerable economic uncertainty remains about the short and medium term. We must therefore remain careful not to take too much from what are still disappointing figures.”
Long also called on the government to recognise the potential benefits for the wider economy of growth within the beer industry.
“The British beer and pub trade employs considerable numbers of people across the country, jobs that are vital to communities everywhere. We have the potential to be a strong engine of recovery for the wider economy and deliver benefits to communities, to tourism, to jobs and to government revenues.
“We urge the Government to recognise this, reflect and reconsider its current plans for a VAT increase in January and a further beer tax increases in next year’s Budget.”
