Drinks sales edge towards real-terms growth

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Positive figures: Drinks sales edge towards real-terms growth despite challenging trading environment

Drinks sales in managed venues pulled close to real-terms growth in the first half of August, falling just 0.6 percentage points short of the current rate of inflation, new data has revealed.

The latest Daily Drinks Tracker from CGA by NIQ showed average sales in the week to Saturday 16 August were 3.2% ahead of the same week in 2024, marginally short of the UK’s current rate of inflation of 3.8%, as measured by the Office for National Statistics (ONS).

It followed a week of solid trading across the previous seven days, with average sales 2.4% ahead year-on-year in the week to Saturday 9 August, continuing decent momentum for the managed pubs, bars and restaurants after a return to modest increases in mid-July.

Strong sales

The data indicated venues saw growth on ten of the 14 days of the first full fortnight of August, reaching between 8% and 12% from Tuesday 12 to Thursday 14 August.

This coincided with a period of hot weather, with temperatures hitting the early 30s in some parts of the country, encouraging consumers to head out to pubs and bars with outdoor spaces.

As is usually the case when the sun shines, Long Alcoholic Drinks (LAD) categories fared best, with beer and cider sales up 6% and 10% respectively year-on-year in the week to 16 August, after growth of 5% and 3% in the previous seven days.

Challenging environment

Soft drinks (up 2% and 4%) also had two weeks of increases. However, it was a negative fortnight for wine (down 5% and 9%) and spirits (down 0.4% and 2%), as consumers migrated to longer and more refreshing serves.

CGA by NIQ commercial lead UK & Ireland Rachel Weller: “It’s encouraging to see the on premise edging back towards real-terms year-on-year growth in drinks sales, and it is hopefully a sign of things to come in the Autumn—especially if good weather holds.

“Nevertheless, the trading environment remains challenging, and relentless increases in costs are making profit growth much harder for businesses to achieve. Operators and suppliers will need to be resolutely focused on delivering both high quality and good value if they are to sustain growth through to the end of 2025.”