'Off-trade to eat up beer sales by 2018'

By Gurjit Degun

- Last updated on GMT

Related tags: Chief executive, Public house, Molson coors brewing company, Food

Supermarkets: will account for 70% of beer sold
Supermarkets: will account for 70% of beer sold
The off-trade is set to account for 70% of beer sales by 2018, according to Molson Coors chief executive Mark Hunter. That represents a significant...

The off-trade is set to account for 70% of beer sales by 2018, according to Molson Coors chief executive Mark Hunter.

That represents a significant jump over the next eight years — the take-home sector currently accounts for 46% of beer sales, according to the British Beer & Pub Association.

"The switch has big implications on everything:

brewing, packaging, cost and infrastructure," Hunter told the Morning Advertiser's

sister title The Grocer​.

"There's been a dramatic shift at a time when there has been enormous cost inflation and a significant number of duty increases."

Trade experts urged the pub trade to respond to the challenge of cheap supermarket alcohol.

BII (British Institute of Innkeeping) chief executive Neil Robertson said: "This trend has been going on a while. The on-trade needs to make the experience better for people when they come out. For example, introducing food, wine and themes like the ones that came up over British Pub Week."

Jon Collins, chief executive of market researcher CGA, said: "It's more than the price; it's about the warmth of welcome, pub quizzes and great food. What brand owners are finding is while you can secure deals with Tesco, it's in the on-trade where you can grow brand value."

Association of Licensed Multiple Retailers' chief executive Nick Bish was cautious about claims that the trend of rising off-sales at the expense of sales at pubs will continue indefinitely.

He said planned action by the Government, such as banning below-cost sales, is likely to have an impact.

Related topics: Beer, Legislation

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