Inflation holding sales 'substantially' behind

By Rebecca Weller

- Last updated on GMT

Significant effect: inflation holding drinks sales in the on-trade significantly behind according to CGA (Credit: Getty/monkeybusinessimages)
Significant effect: inflation holding drinks sales in the on-trade significantly behind according to CGA (Credit: Getty/monkeybusinessimages)

Related tags Finance Cga Drinks

Average drinks sales by value in Britain’s managed pub, bar and restaurant venues in the seven days to Saturday 3 December were 8% ahead of 2021 levels, the latest Drinks Recovery Tracker from CGA by NielsenIQ has revealed.

For the eleventh week in a row, sales showed year-on-year growth with uplifts peaking at 64% on Tuesday 29 November, the day of the 2022 FIFA World Cup match between England and Wales.

However, the latest sales figures benefit from comparisons with last December, when lingering Covid concerns kept some people away from festive occasions in the on premise, according to CGA.

Beer and cider sales up

Additionally, when compared with the same period in 2019, the last comparable pre-Covid Christmas, sales were 8% down.

Moreover, with inflation now exceeding 11%, trading was substantially further behind in real terms.

This comes as the previous tracker​ showed sales were 16% ahead of 2021 levels in the seven days to Saturday 26 November, the first-time trade exceeded inflation in recent months.  

Category wise, beer​ and cider​ sales were up 16% and 19% respectively while growth was more muted in soft​ drinks (up 10%).

Significant effect 

Wine​ saw a 5% uplift while the spirits​ category suffered an 8% decline with all categories behind when compared with the same week in 2019.

CGA​ managing director UK and Ireland Johnathan Jones said: “This should be the best December for the on premise in three years, but comparisons with the pre-Covid levels of 2019 show how trading remains tough.

“The squeeze on consumers’ spending continues to tighten, and forthcoming rail strikes​ will have a significant effect on many operators at the most important time of their year.

“While the World Cup​ is a welcome bonus for many pubs and bars, it is unlikely to be enough to deliver the real-terms growth that on premise operators and suppliers need.”

Related topics Beer

Related news

Show more