Irish pub trade in 'meltdown'
The Irish pub trade is in "meltdown" after suffering a 14.1% decline in sales for the first seven months of 2010.
Mid-year market figures from the Drinks Industry Group of Ireland (DIGI) show that there is little sign of a recovery in the on-trade, coming on the back of a 8.8% decline in 2009.
"Of particular concern are the ongoing prospects of weak consumer demand for the immediate future and the ongoing cost pressure being generated by Government-related costs such as commercial rates and regulation," said chief executive of the Licensed Vintners Association Donall O'Keeffe.
"As a consequence, the sector is in a crisis situation.
"This is part of a wider trend of decline in the on-trade over the last decade that has seen the volume of bar sales fall 25% since 2000.
"In the short to medium term there is absolutely no sign of market conditions improving for the pub trade. Rather the likelihood is that current trends will continue forcing many publicans out of business and thousands of subsequent job losses."
However, sales in the off-trade were up 15% largely thanks to a reduction in duty, which has helped stem the flow of cross-border shopping in Northern Ireland.
DIGI chairman, Kieran Tobin, added: "The clear evidence is that the excise reduction has had the desired effect on cross-border sales.
"Yet while the drinks market has grown and cross-border sales decreased, the overall situation remains extremely difficult for a key national industry that continues to support 80,000 jobs and provide almost 2 billion in VAT and excise revenue to the State.
"Therefore, we will continue to work with the Government in advance of Budget 2011 in identifying further effective stimulus measures that will help support the hospitality industry and provide a boost to the wider economy."
