The British Beer & Pub Association (BBPA) has revealed beer sales data for the first quarter of the year that highlights the impact that pub closures have had on the market.
Overall sales of beer in the period were down 7.2% year-on-year to 1.5 billion pints – the lowest level on record. The fall was entirely down to pub and bars, where sales plummeted 16.4% to a record low of 668 million pints.
The BBPA said the new sales data shows the immediate impact the COVID-19 lockdown had on the beer and pub industry, as pubs were ordered to close on 20 March, following warnings from Prime Minister Boris Johnson as early as 16 March to avoid pubs.
The trade association is calling on the Government to ‘Get Britain Brewing Again’ by giving the UK’s beer and pub sector a clear, definitive pathway to re-opening from 4 July as indicated in the Government’s roadmap for recovery.
The trade association said that pubs will need a minimum of three weeks notice to allow them sufficient time to prepare to re-open. This includes sufficient warning to the UK’s 2,000 brewers who need time to scale-up their operations to start re-supplying pubs with fresh beer.
It means that the Government would need to confirm by 13 June at the latest that pubs will re-open from 4 July. The BBPA highlighted that failure by the Government to give clear notice and a definitive reopening date notice could risk pubs reopening without enough fresh draught beer.
Emma McClarkin, Chief Executive of the trade association, said: “These stark figures reveal how the lockdown is having a devastating impact on our world class breweries and pubs. The cliff-edge impact on our sector, when people were told to stop going to the pub and then when they were shutdown, is clear to see.”
She added: “We are urging The Government to get Britain brewing again now and re-open our pubs from July 4th. To do this our sector needs at least three weeks notice so that our breweries can brew fresh beer and our pubs can get ready to reopen safely.
“Our pubs and breweries are desperately in need of this clarity. Beer sales were at a record low in the first quarter of this year, so it’s imperative we get brewing our beer again and re-open pubs as soon as possible. This will help save pubs from permanent closure, allowing them to start to get back on their feet and protect the vital local jobs pubs and breweries support across the UK.”
NAM Implications:
- Key for NAMs in affected categories is to ensure at least they are getting a fair share of available business…
- …then focus on optimising your relative competitive advantage.
- Meanwhile, pubs will focus on the financial implications of social distancing their estates…
- …but NAMs can anticipate some of the impact by conducting ‘what-ifs’ re a 50% reduction in traffic…
- …at least.
