Beer Sales Up For First Time In A Decade

Written By Unknown on Jumat, 30 Januari 2015 | 18.56

Sales of beer increased in the UK for the first time in a decade during 2014, thanks to tax cuts and a surge in supermarket sales, according to an industry report.

The British Beer and Pub Association (BBPA) said supermarket and off-licence sales overtook pubs for the first time last year with growth of 1.3% in overall sales achieved despite a 0.8% decline in pubs.

The annual Beer Barometer said nine previous years of falls had seen beer sales slide by 24%, with 6.7 million fewer pints sold per day.

And the BBPA said the turnaround followed two cuts in beer duty announced in the last two Budgets, with tax on a typical pint having reached 65p before the decision to scrap the controversial duty escalator in 2012.

The lobby group argued for a further reduction in the final Budget before the General Election to give a further boost to the industry.

More than 10,000 pubs have closed since UK smoking bans were introduced, with the squeeze on household budgets since the financial crisis also among industry reasons for weaker trade.

The shift towards store bought beer has long frustrated many pub companies, which say urgent tax reform is needed to create a level playing field on price.

The boss of JD Wetherspoon, Tim Martin, has been the most vocal in his demands for parity, on VAT in particular.

He has suggested supermarkets are able to "subsidise" their alcohol prices because they do not pay the 20% rate on food while pubs and cafes do.

BBPA chief executive Brigid Simmonds said: "British beer is back in growth - and we want to keep it that way.

"But with 70% of pub drink sales being beer, the picture for our much loved pubs is still fragile.

"That is why another duty cut from the Chancellor is vital. It will build on the success of two very popular tax cuts in the past two years, and boost jobs in an industry that employs 900,000 people, almost half of whom are 16-24 year olds."


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