Value of wines and spirits to pubs set to grow

By John Harrington

- Last updated on GMT

Related tags: Alcohol duty escalator, Alcoholic beverage

Wine's value to the on-trade is set to rise
Wine's value to the on-trade is set to rise
The value of wines and spirits to the UK on-trade is set to increase over the coming years as new outlets sell a greater proportion of these products, new research shows.

The CGA data commissioned by the Wine and Spirit Trade Association (WSTA) is being used by the trade body to argue that abandoning the alcohol duty escalator on all alcohol will help to save British pubs.

The research found that wine’s share of drinks sold in the on-trade is set to grow from 18% to almost 20% by 2018, while for spirits it will increase from 22% to 24%; the combined value of these categories in the on-trade grew by £280m between 2013 and 2014.

In contrast, beer and lager sales are set to decrease from around 50% to 47% over the next four years.

Reliant

The figures show that newly opened bars, restaurant and pubs are relying even more on wine sales, which make up over 22% of their sales (with spirits accounting for 18%), compared to 40.2% for beer and cider.

Meanwhile, in pubs that are closing, wine accounts for a much smaller proportion of sales – just 12.3%, compared to 58.5% for beer and cider sales.

Miles Beale, chief executive of the WSTA, said: “These figures show that pubs, bars and restaurants are increasingly reliant on wine and spirit sales to bring in revenue.

“We are calling on the Chancellor to help save the British pub by scrapping his inflation-busting alcohol super tax at the 2014 Budget. This will also be welcomed by responsible drinkers in hard-pressed times.”

Related topics: Wine, Spirits & Cocktails

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