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On-trade lost out during the lot hot summer, says WSTA report

Published:  06 September, 2013

The long hot summer has proved to be a real test for the on-trade with alcohol sales down by 6% over the last 12 weeks, according to the latest Wine and Spirit Trade Associationmarket report.

The long hot summer has proved to be a real test for the on-trade with alcohol sales down by 6% over the last 12 weeks, according to the latest Wine and Spirit Trade Association market report.

The off-trade enjoyed a better summer with volume sales up 3% over the latest quarter thanks to an increase in sales of cider, beer and sparkling wine, but this did not stop overall sales for the year to be down 2%.   

The WSTA report found that value sales in both the on and off-trades were up 2% for the year, but this was mainly down to the 5.2% increase in duty.

The report, which uses Nielsen, CGA Strategy and Wilson Drinks Report data, looked at each of the key sectors.

Off trade

- Total volume sales were down 2% for the year but up 3% in the last 12 weeks.   

- Sparkling wine is the only category in volume growth over the short and long term, up 10% for the year and up 12% in the latest 12 weeks.

- Champagne sales were down down 13% in the short term and 4% over the year

- Cider and Perry sales were up 12% for the year, although annual growth was flat.

- While spirit sales remained unchanged over the past 12 weeks, sales of liqueur were up +12%.

On trade

- Total volume sales were down  5% for the year and 6% in the short term.

- RTD sales fell by 3% over the year and by 24% in the latest 12 weeks.

- Volume sales of wine were up 1% in the short term but were flat over the year

- Spirit sales were up  5% over the latest 12 weeks and up 1% for the year.

- Malt whisky was the best performer with volumes up 45% in the short term.

Miles Beale, the WSTA's chief executive, said:  "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.  

"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."

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