According to the CGA by NIQ Daily Drinks Tracker, this recent recovery offered a more positive outlook for UK businesses aiming to recover from previous losses and make the most of increased consumer activity.
The tracker revealed the sector saw a significant turnaround, with drinks sales having “bounced back to growth” following a difficult few weeks. The sector initially faced struggles, including a 5% dip in sales within mid-January due to Storm Éowyn.
Previous declines in sales throughout 2024 were due to factors such as bad weather conditions. With declines this year due to a general drop in consumer interest in on trade venues in January. With declines seen in all alcoholic drinks categories.
CGA by NIQ’S commercial lead, Rebecca Weller previously stated: “year-on-year growth remains a struggle for now.”
Back to growth
This was followed by a year-on-year decrease of 2% throughout the first week of February. The situation worsened in the week leading up to February 15, with drink sales plummeting a further 11% below 2024 figures.
However, sales then rebounded in the subsequent week, showing a 4% year-on-year increase, rising above the latest official inflation figures of 3%.
This new growth marks the second positive week recorded by the tracker, which measures average sales by value in managed venues, in 2025.
Trading surpassed the previous year’s levels on six of the seven days, with increases ranging from 8% to 11% between Monday 17 February and Thursday 20 February.
Over the week, soft drink growth was particularly strong at 13%. Wine was up by 7%, and beer increased by 4%.
Cider was also ahead at 3%. However, spirits were down 8% and experienced another negative week.
CGA by NIQ’s commercial lead for the UK & Ireland, Rachel Weller, noted the sector’s volatility.
Insights and analysis
She stated: “Pressure on disposable incomes, storms and dry January have made it a difficult start to the year for some On Premise venues and suppliers, but mid-February’s revival brings some welcome relief”.
She also emphasised the uncertainty of the market, adding: “February’s fluctuations emphasise the volatility of the trading landscape at the moment, and many consumers are clearly still hesitant about spending.
“It remains to be seen whether this is the prelude to a more positive Spring or just a brief respite”.
Several factors may be driving this new rebound, according to CGA. With the comparison of a week of poor weather in February 2024 further contributing to positive figures.
