You are currently viewing the International Edition. You can also switch to the Hong Kong Edition.
Saturday 4 July 2015

Taxes hit UK beer sales

26th July, 2011 by Alan Lodge

Rising taxes have been blamed for a near-10% fall in UK beer sales in the second quarter of 2011.

The January VAT rise followed by a 7.2% increase in beer duty in the latest Budget negated any boom in sales which resulted from the royal wedding as the depressing Q2 figures contributed to a 7.1% decline in sales in the year to June.

The figures are revealed in the British Beer and Pub Association’s (BBPA) latest UK Quarterly Beer Barometer – the industry survey of beer sales.

The survey shows that in the second quarter of 2011, beer sales fell by 9.8% with sales in supermarkets and shops down 15% and pub sales down 4.5%.

According to the Association, pub sales in April and May were boosted due to the royal wedding and a spate of bank holidays, but the cumulative impact of tax rises – equating to 10 pence per pint in pubs – in Q2 severely dampened any positive impact.

The BBPA also pointed out that this year’s comparator had been hit by the “World Cup effect” which boosted sales in both pubs and supermarkets in Q2 last year.

Brigid Simmonds, chief executive of the BBPA, said: “Beer sales are a barometer of Britain’s economic confidence. With last year’s sales figures benefiting from the World Cup effect, which has historically boosted sales, sustaining volumes was always a challenge.

“The royal wedding gave a welcome boost to this quarter’s beer sales, but beer tax rises are now hitting our brewers hard and undermining recovery.

“We warned the chancellor that further beer tax rises would hinder job growth in our sector. Duty increases are fuelling inflation and stifling investment.

“Taxing beer fairly would create thousands of new jobs and substantial extra tax revenues at a time when we are all looking for private-sector led recovery.”

One Response to “Taxes hit UK beer sales”

  1. bierfesten says:

    I think the missing factor here is the Price Rises that the large breweries implemented on all products that have been passed along to consumers, and along with a Government Tax that can be blamed it is the retailers/pubs that are not choosing beers wisely. The growth of Craft Beer and improved Premium beer is the known growth area and the Pub Association must have blinders on if they cannot see that. Having 10 taps of AB-Inbev or Molson-Coors products is likely the culprit, as consumers are spending money on unique and interesting beers/wines/liquors.

Leave a Reply

Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <s> <strike> <strong>

If that's interesting, how about these?

World's cheapest city for a beer revealed

The average price of a bottle of beer is £1.07 in Krakow and Kiev, making them more...

Pimm's and English wine sales leap

UK supermarket Waitrose has noted a surge in sales for Pimm's, strawberries and more...

Beck's forced to issue $50 refunds

Anyone that has bought a Beck's beer in the past four years could be entitled more...

PR Manager

Competitive

Top 10 new craft beers

With new beers coming onto the market all the time, it can be difficult to keep more...

Tesco sales take a tumble despite price cuts

Tesco's like-for-like sales fell by 1.3% in the three months to 30 May, an more...

Champagne needs to 'create a new occasion'

Champagne needs to "create a new occasion" and better communicate its brand if more...

Marketing and eCommerce Manager

London, United Kingdom

Competitive, includes equity options

Wimbledon serves up English wine

Organisers of this year’s Wimbledon have decided to offer tennis fans English more...

Coors Light heads home

Sometimes, the route to excellence is a process of devolution rather than more...

Venezuela faces beer drought

Venezuela could soon entirely run out of beer as workers at the country's more...

Diageo 'shelves' £240m Chinese scheme

Swellfun, the Chinese subsidiary of drinks giant Diageo, has reportedly more...

SWA creates heavyweight London team

The Scotch Whisky Association has appointed a number of senior high-fliers from more...

Britain’s cocktail habits expose north south divide

A survey has revealed Brits' cocktail preferences depend on there they live, more...

Supplier Relationship Manager

London, United Kingdom

UK reviewing alcohol intake guidelines

Health officials are to review the government's drinking guidelines, as more...

UK customs seize 550,000 litres of alcohol

More than 550,000 litres of illegal beer, wine and spirits have been seized by more...

Lidl hints at plans for online wine shop

UK supermarket Lidl has not ruled out launching an online wine shop, reporting more...

PR Senior Account Manager/Director

London, United Kingdom

Depending on experience

World's best beer and wine festivals

Forget Glastonbury, these are the festivals you should be making a beeline for more...

Chinese student builds house out of beer bottles

An engineering graduate and his father have built a two-storey house made out more...

UK market in growth as price increases slow

The latest figures from the Wine and Spirit Trade Association show that more...

Global Wine Buyer

London, United Kingdom

Competitive

Carlsberg creates beer-shampoo

Danish brewer Carlsberg has launched a new range of men’s grooming products more...

Beer festival in China’s Muslim area angers 'exiles'

In China’s predominantly Muslim region of Xinjiang, exiled groups of Uighur more...