Beer sales slump to lowest since Great Depression

Beer sales have slumped to their lowest level since the Great Depression. The staggering statistics, produced by the British Beer and Pub Association...

Beer sales have slumped to their lowest level since the Great Depression.

The staggering statistics, produced by the British Beer and Pub Association (BBPA), reveal the full extent of the summer washout and the pressure mounting on pubs and brewers a-like.

The BBPA has urged the Government to take action and freeze duty on beer in a bid to save our national drink.

In a letter to MPs, the BBPA said that stark market conditions are being made worse by the Government's current tax policy.

Rising pressure

• The volume of beer sold through pubs is now at the lowest level since the Great Depression of the 1930s.

• Overall beer sales - through pubs and the off trade - are now at their lowest level since 1969.

• The total beer market has fallen by 22% since its peak in 1979 - a loss of more than 2.5bn pints. It equates to 7m fewer pints a day being sold.

• Pub beer sales are down 49% from their peak in 1979 - a loss of more than 5bn pints. Today's pubs are selling 14m fewer pints per day.

• Costs are soaring - barley, malt, glass, aluminium and energy prices have all risen sharply.

Falling profits

Between 2004 and 2006 the profits of the major brewers in the UK have fallen by 78%. Brewers now earn just 0.7p per pint profit, compared with an average of 33p per pint the Chancellor takes.

Since 1997, beer duty has increased by 27% and consumption fallen by 11%. In the same period, spirits duty has risen by 3% and consumption risen by 20%. Wine duty has increased 16% and wine consumption 46%.

The time to support our national drink is long overdueRob HaywardBBPA chief executive

Duty freeze

"We believe the benefits that have been enjoyed by other drinks from a tax freeze should be extended to Britain's national drink - beer," said BBPA chief executive Rob Hayward.

"The time to support our national drink is long overdue. We are calling for Government policy to encourage and support Britain's businesses.

"British brewers and beer are of world renown. But our efforts to remain competitive are being undermined by a tax policy that is eroding the foundations of our business.

"We need a tax freeze and that is what we are calling on the Chancellor to deliver."

The MA is also campaigning for a tax freeze on beer. Join our Facebook group or sign our petition here No rise in alcohol tax.