On-trade sales hit by supermarkets

Concern that cut-price alcohol in supermarkets is fuelling a drop in on-trade sales has been confirmed by government statistics.

In the week that Tesco announced record £2bn profits, new figures have shown that the British population is drinking more in the home and less in the pub.

A recent study for the Department for Environment, Food and Rural Affairs showed there had been a nine per cent upsurge in alcohol consumption in the home in the past year - and a 5.5 per cent drop in alcohol being drunk in bars, pubs and restaurants.

Overall purchases of alcohol increased from 726ml to 792ml per person per week.

These figures follow a year of heavy discounting binges in the off-trade. A study by The Publican last November (click herefor details) underlined how £20 can now buy 48 cans of brand-name standard lager - compared to eight pints in a pub.

Mark Dorber, licensee of the White Horse in Parson's Green, London, said licensees needed to fight back against supermarkets.

"We can never compete on price but pubs have so much more to offer," he said.

"We have cask ales and can innovate a lot more quickly than supermarkets.

"We have the opportunity to hand-sell drinks through sampling and get our customers involved through special events, like beer festivals."

Bill Sharp, licensee at the Kings Arms in Southwark, London, said: "Licensees are in a very difficult situation when people can go into a supermarket and buy so many cheap bottles of vodka that they need a lorry to take them home. All that pubs can do is offer good food and drink in a good atmosphere."

However, Kevin Hawkins, director-general of the British Retail Consortium, said there was more than cheap prices behind the success of supermarkets.

He said: "Over the last 10 years this trend has been gathering pace - because there is so much more availability and convenience in the off-trade."