On-trade sales dip continues

Pub and bar sales of drink are continuing to decline, with every category except cider and minerals showing a drop in volumes, according the latest report from market analyst AC Nielsen.

Figures for the year ending in March show beer is down by 4%, spirits by 3% and wine by 1%. Poor weather in February and March accounted for much of the gloom, with the Scottish smoking ban also having an effect. The "ice pour" effect continues to drive sales of cider, with draught volumes up by 5% and packaged sales increased by a massive 208%.

Sales of soft drinks and minerals continue to rise with volumes up 7% as the family market grows. Pubs are faring slightly better than the remainder of the on-trade market, with volumes down 1% compared to a general deficit of 3%.

Standard lager, vodka, small malts and tequila were the only sectors that managed to hold their own.

Most surprising was the 1% drop in volumes of wines and Champagnes, despite the growth in eating-out. The biggest regional drop in liquor sales came in the Anglia TV region, which was down 6%, followed by Scotland down 5%, Central, London and Granada down 3%, and Tyne Tees and Meridian down 1%.

AC Nielsen consultant Graham Page said any bonus brought by the good weather during April could be wiped out by a poor May.

"Pricing differentials between the on and off-trade continued to widen and the campaign against below-cost selling is not making much impact with the supermarkets," Page revealed.

"Total on-trade drink sales are still in decline, affected by the Scottish smoking ban, and also because of fewer pub visits by heavy drinkers."