Above-inflation price of alcohol blamed for wine sales drop in restaurants, pubs and hotels

By Emma Eversham , 13-Jun-2012
Last updated the 13-Jun-2012 at 15:37 GMT

Related topics: Business, Trends & Reports, Restaurants, Hotels, Alcohol

Wine and spirit sales in restaurants, pubs and hotels have dropped by 8 per cent and 1 per cent respectively in the last financial year with above-inflationary prices blamed for the hit. 

Wine sales in pubs, restaurants and hotels have dropped 8 per cent in the last year

Wine sales in pubs, restaurants and hotels have dropped 8 per cent in the last year

According to the Wine & Spirit Trade Association's (WSTA) latest Market Report, the price of wines and spirits has risen by 6.5 per cent in the last year, more than twice that of inflation. 

The results of the survey by CGA Strategy for the WSTA for the year ending March 2012, indicate that the Government's increasing tax on alcohol is having a knock-on effect on wine and spirits sales. 

WSTA interim chief executive Gavin Partington said: "The above inflation increase in the prices of wines and spirits comes as consumers are feeling the pinch and being forced to cut back so it's perhaps not surprising that volume sales overall are depressed.

"But there are encouraging signs elsewhere with wine at higher price points showing strong growth over the year."

Growth areas

Although wine sales and spirit sales fell overall, there were some areas of growth. Malt whisky sales rose 31 per cent while liqueur sales, probably boosted by the growth in demand for cocktails, went up 7 per cent. Despite sales remaining flat for the year, vodka remains the biggest selling spirit in the on-trade. 

Sparkling wine sales were also found to have improved, growing 2 per cent, but at the detriment of Champagne whose sales fell 13 per cent. 

Drinker trends

Those driving alcohol sales in the on-trade are the 18 to 34 year-olds according to the survey of 1,810 people. Forty per cent of 18-24 year-olds and 37 per cent of 25-34 year-olds say they regularly drink out of home while the number drops to around 22 per cent for those over 35. 

The average monthly spend of alcohol in restaurants, pubs and hotels is £43 with beer and lager drinkers spending the highest amounts (£52 and £55 per month respectively) and men traditionally spending more than women. 

BigHighlights

Mark Poynton: Pearls of Wisdom

Mark Poynton: Pearls of Wisdom

The British chef-patron of the Michelin-starred Alimentum and star of Great British Menu Mark Poynton talks about...

Interview with Glendola Leisure's Alexander Salussolia
Small Talk

Alexander Salussolia on Silk & Grain, market niches and nurturing future talent

Managing director of Glendola Leisure Alexander Salussolia joined the company in 1992 as an area manager, before...

60-Second Skill: Using #foodporn to your advantage

60-Second Skill: Using #foodporn to your advantage

Customers posting pictures of your food on social media is a trend you can't escape, but by...

Gallery: the UK’s first experiential craft brewery Drygate Brewing Co.

Gallery: the UK’s first experiential craft brewery

New Glasgow venture Drygate Brewing Co. claims to be the UK’s first experiential craft brewery, offering a...

Hospitality Openings: June 2014

Hospitality Openings: June 2014

Our latest round of up of the hottest hospitality openings includes Heston Blumenthal’s Heathrow venture The Perfectionists’ Café,...

60-Second Skill: Pouring champagne

60-Second Skill: Pouring champagne

As demonstrated at the Moet UK Sommelier of the Year competition, champagne pouring requires skills and knowledge....

Find us on Facebook

Digital Edition - Restaurant Magazine

Access to the Restaurant Magazine digital edition