Molson Coors welcomes beer tax milestone after report reveals scale of pub closures in Scotland

The study reveals that 1,190 Scottish pubs closed between 2007 and 2012. The figure, equivalent to 19.8 per cent, was offset by just 269 openings as the smoking ban, the recession and cheap supermarket booze have all taken their toll in addition to the controversial beer duty escalator, which has also turned many customers away from their local.

Phil Whitehead, managing director of Molson Coors Scotland, said: “Local pubs have long been a cornerstone of Scottish communities and provide people with a great place to meet and socialise.

“It’s fantastic to see that the public recognise the key role played by their ‘local’ in the community. This support and seeing more young people and women visiting pubs will help pull them through times that are challenging for all businesses.”

Whitehead added that pubs and brewers also play an important economic role for Scotland, employing 50,000 people directly, with a further 25,000 jobs in the supply chain.

Community pub closures​

The decline is larger than that experienced south of the Border, with the traditional ‘local’ pub being the worst affected. It found that community pubs (defined as those serving mainly drinks and catering for customers who live in the area) suffered a net closure rate of 18 per cent - some rural areas lost more than a third of their locals.

On a more positive note, the Molson Coors report highlighted that many publicans had succeeded in making their businesses a success in recent years, by providing a high standard of service and diversifying their business model to attract a wider clientele.

The advent of minimum alcohol pricing,​which will cut the margin by which supermarkets can undercut pubs on price, has also come as good news for the on-trade.

Justice Secretary Kenny MacAskill welcomed the Molson Coors report, claiming “The Scottish Government values the licensed trade and supports responsible drinking.

“From cosy pubs in rural communities to bigger city venues that serve thousands of people every month, pubs are an important part of Scottish life. For hundreds of years, people have used them to enjoy a drink and a chat with their friends and we all want to see that continue.”

Beer tax e-petition​

Carling brewer Molson Coors has since spoken out about the news that the beer tax e-petition has hit 100,000 signatures;​the petition is only the 12th Government e-petition to reach the milestone out of over 16,000 that have been submitted.

The beer duty escalator, introduced by the last Government in 2008 and continued by the coalition, has successively penalised Britain’s beer drinkers by automatically increasing duty levels by 2 per cent above inflation every year.

“This milestone shows how strongly the British public feels about the unfair level of tax they pay on beer – 40 per cent of all the beer duty in Europe,” said Scott Wilson, director of corporate affairs at Molson Coors.

“We hear repeatedly that successive governments care deeply about brewing and the role of pubs in the community – which between them account for close to one million jobs in the UK - yet nothing changes as the duty escalator is excused as ‘the previous government’s policy’.

“This Coalition Government must face up to the stark reality that, five years in, the escalator is a damaging consequence of today’s policies, not those of the past. This debate will hold current policymakers to account and strongly signals the public desire to put an end to excessive taxation on beer and pubs."

•​ ​View Molson Coor’s full report on ‘The Future of the Scottish Community Pub’​​