Around 1.4 billion fewer pints were sold in British pubs and other venues in 2021 compared to pre-pandemic levels in 2019, with the on-trade suffering a loss of £5.7bn from beer sales alone.
Despite a loosening of Covid restrictions, pub beer sales were down 38% in 2021 as the pandemic-led trend of people drinking more at home continued, with wine and spirits proving popular.
The data was compiled by the British Beer and Pub Association (BBPA). Emma McClarkin, its Chief Executive said every unsold pint was “a stark reminder of the dislocating effect Covid restrictions had on our sector and the communities our pubs sit at the heart of”.
The industry group also analysed alcohol taxes collected from March 2020, when the first lockdowns started in the UK, to October 2021 when restrictions started to relax. It found beer receipts fell by £681m to £5.4bn, while wine receipts increased £583m to £7.7bn and spirits receipts rose £784m to £6.9bn.
McClarkin stated that the BBPA backed planned reforms to the alcohol duty system.
“Our analysis showing falling beer consumption supports the Treasury’s stated objective to incentivise lower-strength products and differentiate beer from stronger wine and spirits as part of planned reforms to the alcohol duty system,” she said.
“We must again ask ministers to go further and support our recovery by continuing to reduce the punitive tax burden on our sector to ensure the sustainability of brewing and pubs.”
NAM Implications:
- The dilemma for on-trade suppliers and venues…
- …has to be whether to embark on expensive ‘re-education’ of lapsed consumers…
- …or to accept that permanent change has occurred…
- …and cut the cloth accordingly.
- Watch this space…
