Beer sales start to stabilise

By Ewan Turney

- Last updated on GMT

Related tags Beer sales Beer British beer & pub association

Beer sales have shown some signs of stabilising
Beer sales have shown some signs of stabilising
The decline in beer sales has started to show signs of stabilisation despite overall sales recording a dip of 4.8% for the second quarter.

The decline in beer sales has started to show signs of stabilisation despite overall beer sales still recording a dip of 4.8% for the second quarter of 2009 on last year.

Although the decline in beer sales seems to be slowing, pubs still saw a 4.5% dip and supermarkets a 5.2% drop, according to the UK Quarterly Beer Barometer published by the British Beer & Pub Association (BBPA).

The 4.5% drop in pub beer sales means 4.2m fewer pints were drunk each week during the second quarter.

The Government's tax revenue from beer plummeted £156m in the first half of 2009 as result of declining sales.

The figures reveal some stabilisation in overall beer sales compared to the 8.3% drop in the final quarter of 2008 and the 7.8% drop in the first quarter of this year.

Beer sales in supermarkets and off-licences have now fallen at a faster rate than sales in pubs for two consecutive quarters.

"Whilst welcoming a slowing of the decline in beer sales, we are wary about reading too much into these early signs," said BBPA chief executive David Long.

"However, the new figures give some ground for cautious optimism that some speck of faint light may be appearing at the end of the tunnel.

"Consumer spending on beer remains constrained in both pubs and supermarkets. Considerable economic uncertainty remains about the short and medium term. We must therefore remain careful not to take too much from what are still disappointing figures."

Dr Long also highlighted the potential benefits for the wider economy of growth within the beer industry.

"The British beer and pub trade employs considerable numbers of people across the country, jobs that are vital to communities everywhere.

"We have the potential to be a strong engine of recovery for the wider economy and deliver benefits to communities, to tourism, to jobs and to Government revenues. We urge the Government to recognise this, reflect and reconsider its current plans for a VAT increase in January and a further beer tax increases in next year's Budget."

In a separate survey, market analysts Nielsen said that on-trade beer sales had fallen 10% in May.

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