Whilst supermarkets saw an increase in beer sales at the start of the coronavirus outbreak, pub beer sales plummeted 40% in March compared to the same period in 2019.
The British Beer & Pub Association (BBPA) said its figures show the immediate and devastating impact that lockdown is having on the British pub.
Sales in the off-trade – such as supermarkets and off-licenses – were up 10.6% on the same period last year. However, the uplift did not make up for the huge loss of beer sales in pubs, resulting in total beer sales in March down 12.7% year-on-year.
With the March data only showing the impact of 11 days of closure on pubs, April’s data will reveal the full effect of total closure with no sales in pubs at all.
Whilst the Government has given pubs some financial support to help them through the lockdown, the trade association has identified significant gaps that the Government needs to fill.
In particular, 10,000 of the UK’s 47,000 pubs have not been offered any Government grant support, because they have a rateable value above the arbitrary £51k threshold. The BBPA warned that this has left some pubs in desperate need of support and facing a real risk of closing forever.
The BBPA is calling on the Government to take action and give more support to Britain’s pubs to not only help them survive the lockdown, but also allow them to get back on their feet when it is safe to do so.
Emma McClarkin, Chief Executive of the BBPA, said: “These stark figures reveal how the lockdown is having a devastating impact on our pubs.
“The cliff-edge impact on our sector in March, when people were told to stop going to the pub and then pubs were shutdown, is clear to see. In April, beer sales for pubs will be zero. This is devastating our sector, who still have huge fixed costs to cover, far in excess of the sales revenue and financial support they are receiving from Government right now.
“When this crisis is over, the first place many will want to visit with their friends, family and neighbours is their local pub. The Government must invest in them now to save them for the future.”
NAM Implications:
- Forget government help.
- Even more important is the viability of the pub business-model following unlockdown…
- i.e. trying to operate with 30% traffic, socially distanced, is not going to hack it.
- This needs near-zero rental, zero business rates and even then…
