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On-trade suffers more than off-trade as sales of alcohol fall

Published:  08 September, 2011

Sales of alcohol in Britain continue to fall, with the on-trade suffering more that the off-trade, according to analysis by the Wilson Drinks Report WDR.

Sales of alcohol in Britain continue to fall, with the on-trade suffering more that the off-trade, according to analysis by the Wilson Drinks Report WDR.

Overall volume sales in the off-trade were down 1% to August, whilst total volumes in the on-trade were down 3%, to July.

In the off-trade bright spots include the sales of Cider which continue to grow (up 2% in volume and 7% in value), spirits such as vodka and liqueurs also showed volume growth as well as strong sales value growth and  ready to drink/ready to serve RTS was the best performing of the major categories.

The WDR sees the on-trade splitting in two with hotels, managed pubs and restaurants performing well, with net increases in both volume and value sales, but non-managed pubs, proprietary clubs and sports/social clubs, showing both total volumes and total sales value declining for the 12 months to July 9.

Tim Wilson, said : "Still wine sales across hotels and restaurants were particularly strong : total still wine sales volumes increased by 6% and total still wine sales value increased by 23% to £1.7 billion, according to the CGA Strategy data.

"It is not all gloom and doom in the on-trade, as these wine sales figures show.

"The drinks industry is having a tough time in the current economic circumstances, and the drop in most people's net disposable income is reflected in declining sales of alcohol, at least in terms of volumes.

"However, total sales in terms of value appear to show growth, as the total sales value increased by 4% for the same periods in both the off and on trade channels.

"But most of this is attributable to significant increases in duty on alcohol, and the increase in VAT to 20%".

Wilson adds that duty will keep going up "Although total volumes have been declining steadily over recent times, the total duty on alcohol collected by HM Revenue & Customs continues to rise.

"Unfortunately for drinkers, we expect duty on alcohol will continue to be a major contributor to Government funding even though we are drinking less year on year."

Figures are based on Nielsen data for the off trade (12 months to 6 August 2011) and CGA Strategy data for the on trade (CGA Brand Index data for P07, 12 months MAT to 9 July 2011).

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