Retail beer sales 'fall faster than pub trade'

Off-trade beer sales fell by more than on-trade sales in the first quarter, according to the British Beer and Pub Association (BBPA).

Sales of beer in supermarkets and off-licences were down 11% in the first three months of 2009, compared to the same period last year, while beer sales in pubs, bars and restaurants fell by just 6.3%.

The drop marks the third consecutive quarter in which retail sales have fallen, after experiencing a 3.8% increase in the second quarter of 2008. However, it is the first time since the BBPA launched its Beer Barometer in June 2008 that they have decreased by more than on-trade sales.

In addition, the BBPA says that the slump in off-trade sales marks the first time since 2005 that first-quarter sales have been down on the previous year.

Neil Williams from the BBPA said that while the off-trade sector had been hit harder than the on-trade in the first three months of the year, it was "too early to call this a trend".

Williams told More Than Business News: "This could be down to discounting not being as deep in the off-trade as, for example, it was over the Christmas period, and Easter falling in a different quarter this year".

Over the whole sector, beer sales dropped by 8.2% in the first quarter compared to the same period last year - the highest first quarterly fall since 1997.

The BBPA has called on the Government to review its continued policy of raising beer tax, stating that income from duty in January and February was down £17 million on the same period in 2008, despite an 18% tax increase.