Beer may be the symbol of the pub, but spirits are now its lifeline
Charlotte Nichols MP has warned that “pubs cannot survive on beer alone” as spirits now make up 38% of on-trade profits. db spoke to industry voices about changing consumer habits, tighter margins and early evening trading in the sector.
Writing in Politics UK, Charlotte Nichols MP, chair of the All-Party Parliamentary Group on Pubs, set out the stark reality facing Britain’s pubs. “Beer will always be synonymous with the pub,” she wrote, “but if we want our pubs to remain the heart of British life, we must also embrace and support the role of spirits. Pubs cannot survive on beer alone.”
Spirits now account for 38% of on-trade profits in pubs and bars across Great Britain, according to Scotch Whisky Association research, and a pub still closes every single day. Nichols is urging the government to reform the alcohol duty regime, which currently penalises spirits more heavily than beer, despite spirits being one of the UK’s most successful homegrown industries.
“Pubs are not just businesses; they are the beating heart of our communities,” Nichols said. “Spirits play a vital role in keeping them alive. Supporting our pubs means supporting the industries that sustain them – and that must include our world-leading spirits sector.”
Why spirits matter more than ever
The case is both cultural and commercial. Scotland alone produces 70% of UK spirits, with Scotch whisky standing as the world’s most traded spirit. A third of UK consumers now opt for a spirits-based serve over a pint. A single measure of whisky contains half the units of alcohol and fewer calories than a pint of beer, making it easier for consumers to make more responsible choices.
The Scotch Whisky Association has called for a multi-year freeze on spirits duty at the November Budget, a stance supported by First Minister John Swinney and UKHospitality. With pubs already adapting to shifting drinking habits, industry insiders believe this recognition is overdue.
“Nights out are now often focused on going for a nice meal with a drink”
Operators told the drinks business that Nichols’s argument reflects what they are seeing on the ground. Sebastiano Cristofanon, bar manager at Nightjar in Shoreditch, said the shift in priorities is striking: “People started to prioritise health and balance, which is good, but they are drinking less, paying more attention to nutrition, working out, making sure they get enough sleep, and being more financially cautious. Nights out are now often focused on going for a nice meal with a drink, rather than staying out and drinking late into the night like people did a few years ago.”
That means fewer pints, and more cocktails or spirits-led serves, which tend to fit more easily into an evening where drinking is not the main event.
“Daytime clubbing shows how much has changed”
Cristofanon also pointed to the rise of daytime parties as proof of the shift. “More and more clubs are closing earlier, and there is a growing trend of daytime clubbing, where parties start around 1pm and wrap up by 10pm on a Saturday night. If that is what is happening with clubs, you can imagine the effect on cocktail bars too.”
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As a result, pubs cannot rely on beer-led late nights. Spirits, often served earlier in the evening, now anchor profitability as traditional night-time trade contracts.
“Late-night business only works if customers have disposable income”
Food-led venues are also playing a role. Xiaoxiao Wang, owner of Noodle & Beer in Chinatown, was candid about the pressures of late-night trading. “Late-night trade can be a struggle from time to time, influenced by factors like weather and the economic climate. For restaurant operators, late-night business only works if customers have disposable income to go out.”
If disposable income shrinks, pubs that rely solely on beer sales may find themselves most exposed. As Nichols said, diversification is paramount to survival.
“Overheads can outweigh extra revenue”
John Austen, company director of Booths By Lux, said the challenge is as much about costs as culture. “Running a venue past midnight comes with higher staffing costs, pricier insurance premiums and tighter compliance rules. For owners, those overheads can outweigh the extra revenue from a few more hours of trade, especially when customers are spending less on nights out. Many bars now choose to concentrate on early evening crowds when footfall is steadier and margins more predictable.”
That trend may reinforce the role of spirits, which can command stronger margins than beer, especially in the earlier part of the evening when pubs and bars are busiest.
Bigger picture
Nichols’s comments come at a time when pubs are reshaping their role in British life. With Gen Z driving earlier dining and drinking patterns, operators are moving away from the pint-led model towards a broader offer. Cocktails, whisky and spirits-led serves are now as much a part of the pub experience as beer.
The question is whether government policy will catch up. A freeze in spirits duty, or a rebalance of the tax system, could help pubs adapt to changing habits while safeguarding one of the UK’s most valuable exports.
Beer may remain the symbol of the pub, but spirits are now its lifeline.
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