BBG warns rising taxes could backfire on Gov and pubs, new fruit beer flying

However, the giant beer brewer is also pleased with the growth of the fruit beer category and consumers’ desires to socialise in pubs.

Speaking to The Morning Advertiser, BBG UK&I on-trade director Giovanni Curi said the pub sector remains one of the most heavily taxed industries in the country and warned additional financial pressures could have unintended consequences.

“We see it as one of the highly taxed industries across the country,” he said. “That impacts breweries, that impacts pubs, publicans and wholesalers, so everyone in this chain is highly taxed.”

While acknowledging the fiscal challenges facing ministers, Curi said BBG regularly engaged with Government to communicate the potential impact further tax rises could have on the trade.

“We try to share the concerns and the possible impacts that more taxes might drive lower revenues and might drive people to think even more before going to a pub,” he explained.

“If people stop going to pubs, you’re going to have lower revenue on this, so it’s tricky.”

Despite challenging economic conditions, Curi said BBG – which has gone above and beyond to decorate the Dog & Fox in Wimbledon for the famed tennis tournament – was seeing positive signs of consumer resilience, with people continuing to prioritise social occasions.

He said: “People are understanding the importance of socialisation. We see a clear trend of people wanting to socialise and go out, understanding the importance that you should not be at home for hours scrolling on their phones. It’s so great to go into the trade and connect with people.”

Pubs are a place where things happen

He added that pubs had remained relevant for centuries because they continued to provide experiences consumers could not easily replicate elsewhere.

“That’s why pubs have been here for centuries; it’s a place where things happen,” he explained. “We believe the industry is a very resilient industry.”

The comments come as BBG continues to invest behind premium and innovation-led brands, including the recent launch of Stella Artois Strawberries & Cream, a limited-edition beer launched to coincide with Wimbledon.

According to Curi, the product has tapped into growing demand for sweeter beer styles and fruit-led flavours among pubgoers.

“We saw that there is this sweet spot,” he said. “People go to a pub and they want to have the experience of a pint, but they say: ‘I want something sweet’.

“That’s the fruit beer segment, and we saw there was an opportunity there.”

The launch forms part of BBG’s wider focus on what it identifies as three key growth areas: premiumisation, moderation through alcohol-free products, and “beyond beer” occasions.

Seasonal offering for now

Curi said early sales of the new variant had exceeded expectations.

“It’s doing really well,” he said. “We’re seeing sales absolutely performing. People like it.”

While the brewer has launched the product as a seasonal offering, he suggested BBG would continue to monitor performance before making decisions about its future.

Alongside product innovation, BBG is increasingly focusing its efforts on pubs as a major driver of future growth in the UK market.

“The on-trade is the new source of growth for AB InBev in the UK,” said Curi.

As a result, the business has increased investment in field sales and support teams in recent years to strengthen relationships across the pub sector.

“Three years ago we didn’t have the field sales that we have today,” he said. “We increased, we put more people in the field.

“We are betting and we are gambling that we believe that’s going to be the source of growth for the next years in the UK.”

Curi added that premium brands such as Stella Artois, Corona and Modelo remained central to the brewer’s long-term ambitions, with consumers continuing to seek higher-quality drinks and experiences when visiting pubs.