April beer volumes down by around 15%
Jeremy Blood, who has been confirmed as boss of Scottish & Newcastle UK in the wake of the takeover by Heineken, has claimed the on-trade beer market is the worst it has been in 27 years.
He has said the on-trade beer market is seeing the sorts of declines in volume "unknown for a generation".
He said: "People have got to look at their business models - and to not be ostriches."
His comment come as one Morning Advertiser source is claiming that April on-trade beer volumes are likely to have experienced "carnage" with declines of around 15%.
This is not a happy time for the on-tradeJeremy BloodS&NUK
One senior industry source told the Morning Advertiser: "The first two weeks of May and April were the only summer we had last year.
"There's been an absolute classic double swing - great weather and Easter falling in April last year compared to a smoking ban, bad weather and a consumer slowdown this April.
"And in real terms, the price of beer in supermarkets is lower than it was pre-Budget.
"What's clear is that supermarkets are investing their own margin in pricing activity."
Poor March
British Beer and Pub Association figures show a very poor March for the on-trade and a very strong month for the off-trade.
Total beer volumes were down - 7.6% in the on-trade in March compared to the year before while total beer sale in the off-trade were up 15.4% - overall total beer volumes were up by 1.5% compared to the year before.
A source said: "The off-trade figures may be flattered by the major supermarkets buying large amounts of beer ahead of the duty increase in the Budget."
Industry observers hope that figures will improve once the first anniversary of the smoking ban is reached, especially if the weather is better than experienced last summer.
Blood, who previously ran Scottish & Newcastle Pub Enterprises, added: "This is not a happy time for the on-trade.
"There will be easier comparative figures in the second half of the year."
