Kate Nicholls, chief executive of the Association of Multiple Licensed Retailers said: “Crucially we would like to see the new government create a levelling of the playing field in terms of VAT, business rates and alcohol prices to ensure that the licensed hospitality business remain competitive at the same time as tackling pocket money prices in the off-trade.
“What is needed is stability and certainty to allow pubs to improve their offerings. It is worth remembering however, that more than 70% of alcohol consumed in the UK is consumed away from the safe, supervised environment of a pub or bar.”
JD Wetherspoon’s chairman Tim Martin also urged the incoming Conservative Government to create “equal rates payable per pint in pubs and supermarkets.” The pub giant accused supermarkets of impacting trading performance earlier this month, naming the late night levy, higher business rates per pint and a ‘huge VAT disparity’ as major disadvantages for pubs. Martin has been a vocal critic of supermarket booze offers throughout his tenure as chairman of the company, which now has over 900 pubs.
Tim Page, chief executive of CAMRA added: “Well-run pubs are part of the solution, not the cause of any problem the UK has with alcohol. They present a controlled atmosphere rather than drinking for drinking’s sake. The same cannot be said for alcohol purchased cheaply from supermarkets. We call on the Government to recognise this distinction and to support pubs.”
However, Chris Wright from the Pubs Advisory Service urged publicans to think more carefully about their drink offer. Wright said: “My take is that publicans who only sell branded products that you can find in the supermarket are playing a losing game.
“Visiting a pub is about finding exciting products, not about buying something you can get on a three for £5 offer from a supermarket.”
Morrisons revealed it is set to close 23 stores following losses earlier this year, and Sainsbury’s reporting its first annual loss in a decade.
Falling supermarket profit figures could spell good news for licensees, with consumers more likely to eat or drink out rather than take advantage of supermarket’s ‘dine in for £10’ deals. A recent PMA survey found readers are seeing an increase in consumer spending, with more than half experiencing a rise in turnover in the last year.