Alcohol sales fall but value remains flat as customers increasingly ‘trade up’

The figures are included in the WSTA’s Q3 Market Report, which showed sparkling wine and champagne sales as the only positive trend for the on-trade in the 12 months to July.

The figures show volumes of beer sales down 3% but with value rising 1%. The report shows the price per litre of beer rising 5%. Wine sales were down 1% year on year with spirits -2%; ready-to-drink beverages -21% and fortified wine down 6%. Cider and perry sales were flat while sparkling wine was up 17% and Champagne +1%.

In the 12 weeks to 12 July total volume of alcohol sales remained flat but the value grew 2%. Cider and perries sales also rallied to +4% in this period, with beer sliding 1%.

The report, compiled by CGA Strategy, highlighted the particular hit taken by spirits with gin, rum and tequila the only categories to show any growth.

The report says: “Although value growth remained strong across most categories, suggesting consumers are trading up, vodka, whiskey and liqueurs all saw volumes fall over both periods.”

Disappointing​

WSTA chief executive Miles Beale said: “Despite disappointing volume growth, the trend towards higher value products in some categories and the growth in premium products like Champagne is an encouraging sign. 

“While we are starting to see some benefit from the scrapping of the Alcohol Duty Escalator, it will take time and require sustained support to reverse the impact of six years of duty hikes on the wine and spirit industry, especially on pubs, bars and restaurants. Given the growing importance of wine and spirits to the on trade, further duty relief for all products would provide a significant boost for struggling pubs.”

In comparison the off-trade saw volume growth of 1% over the year with a 3% hike in value. Beer sales grew by 2% across both volume and value in the same period.