Pub beer sales down 130m pints

Pub beer sales plummeted 9.9% in the fourth quarter of 2008 — equating to a massive drop of 130m pints on last year.

The figures from the British Beer and Pub Association (BBPA) show that sales in supermarkets and off-licences were also down 6.5%, giving an overall drop of 8.3% or 2.2m fewer pints drunk every day from October to December compared to 2007.

Beer sales for the whole of 2008 fell 5.5% on 2007 levels with on-trade sales down 9.3% and off-trade sales down 0.2%.

Compared to 10 years ago, sales have fallen by 4.4m pints a day.

The BBPA estimates that Government revenue from duty and VAT has dropped £181m since the March Budget despite an 18% rise in duty.

"These figures highlight the extreme economic pressures hitting Britain's beer and pub sector," said BBPA chief executive Rob Hayward.

"Beer sales are sinking and many pubs are struggling to survive. Pub closures have escalated to nearly six a day. Unfortunately, Government tax policy is only making a difficult situation worse.

"Due to the Government's tax escalator and VAT policy, we are facing two further tax increases this year alone. By the 2012 Budget, the tax on your pint of beer will have increased by up to 40% from February 2008.

"We are not asking for a tax handout, like other sectors. We just don't want our tax burden to be made worse. When it comes to stimulating the UK economy, the Government should not and must not turn a blind eye to Britain's beer and pub sector.

"British pub-goers have been hit hard by the Budget and the Pre-Budget Report. In addition to further tax increases, the Government says it wants pubs to pay an extra £300m this year alone as the cost of introducing a mandatory code of practice.

"The industry's Axe the Beer Tax — Save the Pub campaign has seen a surge of public support for our beleaguered sector. It's time for The Government to respond to these calls and support a great British industry."