Hot summer becomes 'long dry drought' for pubs and restaurants
While many restaurants, pubs and hotels reported a boost to trade during July's heatwave, overall, volume sales of alcohol in on-trade continued the year's downward trend during the summer months.
Volume sales of beer and cider fell seven per cent and four per cent respectively while RTD sales dropped by 24 per cent. Wine, sparkling wine and spirits, led by growing interest in cocktails, were the only categories to experience growth, while value dropped in all categories apart from spirits (up 11 per cent) and cider (up two per cent).
WSTA chief executive Miles Beale blamed the Government's alcohol duty escalator for some of the drop.
“While the hot weather provided a temporary and welcome boost for the off trade, on-going duty increases and squeezed consumer spending continue to damage the trade and WSTA member businesses," he said.
"Given the record hot summer, the fall in sales in the on trade is a surprise and underlines the need for an early end to the alcohol duty escalator to provide some relief for struggling pubs, bars and restaurants.”
Drinking at home
In contrast, the report, compiled by CGA, Nielsen and Wilson Drinks Report for the WSTA, found that alcohol sales within the off-trade had risen three per cent during the same quarter as drinkers decided to stock up on beer, cider and wine to drink at home.
Average monthly spend on alcohol to drink at home has also risen £3 over the last year with consumers spending on average £32 in August 2013 compared to £29 in August 2012.
However, the same level of increase does not apply to drinking out. The average monthly spend on going out in August was £45 compared to £44 in August 2012.
When it does come to drinking out, those spending the greatest amounts are bitter and ale drinkers (£55 per month), followed by lager drinkers (£53 per month) and cider drinkers (£49 pm).
Restaurant, pub and bar customers are also increasingly opting for French wines. Sales of wines from France in the on-trade grew 10 per cent over the last quarter, overtaking Argentina as the strongest performing country. Italian and Spanish wines also continued to grow over the year.
