Beer sales suffer as tax hikes criticised

  • By Josh Hall
  • 28 April 2009

Beer sales suffered a year-on-year drop of 8.2 per cent in the first quarter of this year, according to new figures released today.

The survey, released by the British Beer & Pub Association (BBPA), shows that 1.7 million fewer pints were bought every day during the first three months of 2009.

Pubs have been squeezed by rising beer prices. Franchisees have often been subjected to surprise price hikes as their parent companies struggle to cope with losses.

But it was supermarkets and off-licenses who suffered most in the early part of this year, with retailers reporting an 11 per cent drop. Beer sales in pubs, bars and restaurants were down 6.3 per cent.

David Long, chief executive of the BBPA, said that the Chancellor"s 2 per cent tax rise is evidence that "government tax policy continues to make the situation worse."

Tax on beer has increased by 18 per cent in the past year.

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