BBPA admits 'challenging' beer market remains as on-trade sales fall again

By Peter Ruddick

- Last updated on GMT

Related tags: Alcoholic beverage, Public house, Beer

A 5.8 per cent fall in on-trade beer sales during the second quarter of 2013 was partly as a result of the comparisons with Q2 last year which featured the Euro 2012 football tournament
A 5.8 per cent fall in on-trade beer sales during the second quarter of 2013 was partly as a result of the comparisons with Q2 last year which featured the Euro 2012 football tournament
The British Beer & Pub Association (BBPA) has admitted the beer market remains 'very challenging' after its Beer Barometer found on-trade sales fell by 5.8 per cent in the last three months.

Total UK beer sales fell by 4.8 per cent in the second quarter of 2013 but the losses to pubs, bars and restaurants were worse than the losses experienced by the off-trade - the 3.6 per cent drop was actually the lowest second quarter fall for retailers since 2005.

Brigid Simmonds, chief executive of the BBPA, pointed out the figures were compared to a quarter last year which included the Euro 2012 football tournament, the Diamond Jubilee and a double bank holiday.

However, she also said the data was a wake-up call to anyone who thought the cut in beer duty and abolition of the controversial escalator had solved the industry's woes.

"The figures clearly show that the market for one of our iconic products is still very challenging," she admitted. "The benefits of the beer duty tax cut, and the increased investment that this will bring to the beer and pub sector, will take time to bear fruit.

"The ending of the escalator means that next year’s automatic, above-inflation tax increase has been cancelled, and quite rightly. However, the Government should continue to look for ways to help the sector,” she added.

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