Pubs suffering miserable summer

Pubs have endured another miserable summer as consumers look to save money and take advantage of cheap off-trade deals.

The latest Nielsen figures reveal an 8% drop in on-trade sales volumes on last year but off-trade sales volumes are up 3%. Its research also shows that 30% fewer consumers are spending disposable income on going out than they did in 2005 and 2006.

Jake Shepherd, marketing director at Neilsen, said: "Our sales figures which cover the early summer period show that 2008 has been worse than 2007. With people cutting back on unnecessary expenses and another dreadful July and August weather-wise, we don't expect to see this trend alter."

In volume terms every major drinks category has seen sales declines in the on-trade in the last year — even cider, which was growing in excess of 30% this time last year has dropped back to -1% year on year.

The beer market has been particularly badly hit. Shepherd added: "In the last economic downturn at the beginning of the 90s there was still a large proportion of blue collar workers in the country who retreated to their local pub or working man's club to chew over hard times with their peers.

"As a result, beer sales remained relatively strong through that recession. Now we have a totally different social structure with a large proportion of jobs in the service sector so that drinking culture which kept the trade afloat in the early 90s has faded and our data suggests that people are already cutting down on going to the pub."

Alcohol category inflation is around 2% for the latest year, edging up to just over 3% for the last quarter, which includes additional duty, but still behind the 9.5% increase on food.

Shepherd added: "An Indian summer may tempt people out but if it stays as dull as we have seen it, there's no reason for consumers to front the expense of an evening out when they can stay at home, avoid being chilly and save money."