Beer sales decline accelerates

Beer sales have slumped by more than 7% versus this time last year in what an industry group says is symptomatic of the dwindling economy.

The latest 'beer barometer' from the British Beer and Pub Association (BBPA) paints a grim picture of the state of the industry, with pub sales of beer down by 8.1% and supermarket sales hit by a 6% drop versus Q3 in 2007.

The overall slump of 7.2% - the greatest Q3 fall in a decade - follows the 4.5% drop in the second quarter versus 2007 figures, and shows the impact of the credit crunch and the effect on British households of the "looming recession", according to the BBPA.

In total, 161 million fewer pints were sold from July to September this year than in 2007 - equivalent to 1.8 million a day.

BBPA chief executive Rob Hayward called on the Government to "ease the constraints of the tax and regulatory burden", and said plans to increase beer taxes should be scrapped.

He added: "This sales trend is symptomatic of the problems infecting the broader economy.

"But any prudent diagnosis would also identify the specific impact of the Budget's 9% beer tax increase and the constant stream of costly regulatory burdens flowing from the Government's alcohol strategy.

"We're not looking for a handout, just a hand-up."

IMAGEBen Birchall/PA Wire