FDBusiness.com

Total beer sales in the UK fell by 3.9% last year, impacted by the rises in Beer Tax, according to the latest UK Quarterly Beer Barometer published by the British Beer & Pub Association. While off-trade sales have remained relatively stable, with shop sales up by 0.6%, pub beer sales have shown a sharp fall of 7.5%. Indeed, pub beer sales have now fallen by a dramatic 20.2% in the past three years alone, as tax rises have hit trade.

The fall in UK beer sales in 2010 represents a significant loss of income for the British Treasury. If beer volumes had been maintained throughout the year, the Government would have seen £257m extra being banked by the Exchequer, points out the BBPA.

“Huge tax rises are having a big impact on beer sales. The Government should abandon plans for above inflation hikes in beer tax in the Budget, as further rises are simply unsustainable,” comments Brigid Simmonds, BBPA chief executive: “As beer duty has increased so dramatically over the last few years, the amount of beer produced and sold in Britain has fallen.”

She continues: “Beer and pubs are vital for the economy, and pubs play a vital role in local communities. With beer the core seller in pubs, the Government needs to pursue more pub-friendly tax policies. This would create a win-win situation, with a boost for lower-strength, pub-based drinks like beer, and more revenues for the Treasury.”