BBPA urges tax freeze to rescue beer
Save our national drink by freezing beer tax - that is the message from the trade as new figures show beer sales are the lowest since the Great Depression of the 1930s.
The staggering statistics, produced by the British Beer & Pub Association (BBPA), reveal the full extent of the summer wash-out and the pressure mounting on pubs and brewers alike.
The BBPA urged the Government to freeze duty on beer in a bid to save our national drink. The move follows last week's official launch of the Alcohol Health Alliance lobby group, which wants a 10% hike in alcohol tax.
Meanwhile, the trade met Gordon Brown yesterday to discuss issues connected with social responsibility.
In a letter to MPs, the BBPA said poor market conditions are made worse by the Government's current tax policy. The BBPA pointed out that since Labour came to power in 1997, beer duty has increased by 27% and consumption fallen by 11%.
In the same period, spirits duty has risen by 3% and consumption risen by 20%. Wine duty has increased 16% and wine consumption 46%.
Brewers now earn just 0.7p per pint profit, compared with the average of 33p per pint the Chancellor takes. Between 2004 and 2006 the profits of the major brewers in the UK have fallen by 78%.
"The benefits that have been enjoyed by other drinks from a tax freeze should be extended to Britain's national drink - beer," said BBPA chief executive Rob Hayward.
"The time to support our national drink is long overdue. We are calling for Government policy to encourage and support Britain's businesses.
"British brewers and beers are of world renown. But our efforts to remain competitive are being undermined by a tax policy that is eroding the foundations of our business.
"We need a tax freeze and that is what we are calling on the Chancellor to deliver."
Last week two major brewers - Scottish & Newcastle UK and Carlsberg - warned that price rises were on the cards due to surging costs and the impact of the poor summer trade.
S&NUK managing director of on-trade sales Willie Crawshay predicted brewers would have to find new ways to cover surging costs, which include raw ingredients and energy.
Rising pressure
l Volume of beer sold through pubs is now at the lowest level since the 1930s
l Overall beer sales - in pubs and off trade - are at lowest level since 1969
l The total beer market has fallen by 22% since its peak in 1979 - a loss of more than 2.5bn pints. It equates to 7m fewer pints sold a day
l Pub beer sales are down 49% from their peak in 1979 - a loss of more than five billion pints
l Costs are soaring - barley, malt, glass, aluminium and energy prices have all risen sharply.
