Continued drinks sales growth impacted by inflation

30-May-2023 - Last updated on 30-May-2023 at 08:49 GMT

Fair weather led: the Drinks Tracker authors believe the good weather will help continue spending (credit: Getty/Kar-Tr)

Early May bank holidays have helped pubs and bar drinks sales reach year-on-year growth for fourth week in a row but with inflation still in double digits, real-terms growth remains elusive.

Statistics from CGA by NIQ’s Drinks Recovery Tracker shows a 5% increase in sales in managed venues in the week to Saturday 20 May versus the same week last year.

Trading peaked on Sunday 14 May, when warm weather lifted sales by 18%, and it was ahead by between 1% and 7% on every other day except Tuesday 16 May, which was down 8% after a tough comparative in 2022.

6.9% YOY growth for April

The solid week continues a strong April and May for drinks sales thanks, in part, to a succession of bank holidays, including one for the King’s coronation. Trading is also in line with data from the Coffer CGA Business Tracker, which showed managed groups achieved 6.9% year-on-year (YOY) growth in total sales in April.

The tracker’s authors also believe the sunny weather across the final bank holiday weekend of May should see sales momentum continue.

However, after adjustments for high inflation – which stood at 8.7% in April, according to the Office for National Statistics – sales remain behind the levels of 2022 in real terms.

Beer and cider perform best

The Drinks Recovery Tracker’s breakdown of sales by category showed beer (up 10%) and cider (up 15%) performed best last week – as is usually the case in warm weather. Soft drinks (up 2%) and wine (up 1%) were ahead too, but spirits sales were 5% behind last year.

“Last week’s trading patterns gave us another reminder of how warm weather boosts pubs and bars – especially ones with outdoor space,” said CGA managing director, UK and Ireland, Jonathan Jones. “Continued high temperatures should help to round off a good May for sales and drink-led venues will be keeping everything crossed for a similarly bright summer.”