Tax increases hit pub and restaurant wine sales

In its latest Market Report, the WSTA found that wine sales in the on-trade had dropped 1 per cent as prices rose 10 per cent. In contrast, there was a 34 per cent increase in the sale of £9 to £10 bottles of wine in the off-trade, indicating that consumers are increasingly wining and dining at home.

WSTA chief executive Jeremy Beadles said: “This year’s further above inflation increase in excise duty and the rise in VAT and other taxes have really fed through to prices and millions of hard-pressed consumers know it only too well.

“The impact is being felt particularly in pubs and restaurants as people go out less and that switch is seeing some consumers spending on treating at home instead. Overall consumers are feeling the pinch.”

Alcohol price hike​

The price of alcohol rose by 5.3 per cent between March and April last year as a direct effect of the increase in excise duty, VAT and other taxes increases.

The WSTA’s findings reflect concerns from trade groups that the price hike will isolate customers. Last month, the British Beer & Pub Association chief executive, Brigid Simmonds warned the Chancellor that rising costs of food and drink were ‘bound to have a detrimental impact on the pub and hospitality sector.’

The report also found that consumption by drinkers at home is reflected in other buying habits as 71 per cent of adult drinkers buy products and services online.