Research

For the first time ever, shops are selling more beer than the on-trade

By Oli Gross

- Last updated on GMT

Duty blamed: UK on-trade pays 14 times more than German counterparts
Duty blamed: UK on-trade pays 14 times more than German counterparts

Related tags European union

The on-trade sold less beer than supermarkets and convenience stores for the first time on record last year.

Latest statistics from the British Beer and Pub Association (BBPA), which date back to 1980, show a drastic shift in consumer behaviour.

In 1980, the on-trade had an overwhelming dominance of the beer market, selling 87.7% of all beer consumed, and the figure for pubs was still at a healthy 79.6% in 1990.

But since then, cheap supermarket booze has taken hold of the country and, this year, off-trade sales account for 51% of all beer consumed in the UK.

21st-century habit

The shift towards drinking in the home accelerated after the turn of the century, with on-trade sales dropping from 67.6% in 2000 to 51.9% in 2010.

The drop since then has been less aggressive, and the level fluctuated between 50-55% in the following year, for the first time striking a balance in 2014 - a year that saw a 50% share between each sector.

But 2015, was the first year the off-trade had a majority. The BBPA put the changes largely down to the beer duty escalator.

Beer duty

UK beer duty is 54% higher than it was in 2000, despite recent cuts to the duty rate.

The BBPA said the data shows much more work needs to be done to cut beer duty in the UK, with the UK rate still a staggering 14 times that of Germany.

Overall UK consumption is 67.7 litres per head, per year – below the EU average of around 72 litres.

Cause for concern

Brigid Simmonds, chief executive of the BBPA, said: “Many of the figures detailed in our updated stats handbook are encouraging for our industry, but the UK’s high duty rate on beer is still a cause for concern. We will continue to work with the Government to bring our rate more in line with other European nations and help better support our industry.

“Our new handbook again underlines that with the right policies for the beer and pub sector, there is huge scope for us to help grow the economy, creating new jobs and careers, with great venues and beers.”

Related topics Beer

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