Bad news for pubs as alcohol consumption continues decline

  • By Josh Hall
  • 3 September 2010

Alcohol consumption dropped last year by some 6 per cent – the fourth such decline in five years, and the sharpest annual fall since 1948.

Contrary to popular opinion, alcohol consumption in the UK is now below the EU average. UK consumption is 13 per cent lower today than in 2004.

This is according to a new report from the British Beer and Pub Association (BBPA), published today. The report suggests that, while alcohol sales are in decline, some sectors are faring better than others.

Ale began a concerted march on the beer market last year, expanding its market share for the first time since the 1960s. Total spending on beer was some £17 billion – more than 40 per cent of the UK’s total alcohol expenditure.

Despite this, falls were seen in both on- and off-licence premises. Supermarkets and restaurants suffered, as well as pubs and bars.

The UK imposes the second highest taxes on beer in the EU. Duty rates are ten times higher than in Germany, and seven times higher than in France. Alcohol contributes some £14.6 billion to the Exchequer.

Politicians and trade groups have long campaigned for a cut in the duty charged on beer. Many believe that high taxes are a key factor in the deterioration of the UK pub market.

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