Drinks sales down 11% in the week to Saturday 22 January

The figures come after shortfalls of 18% and 12% in the first two weeks of 2022, though these were an improvement on the 25% drop in the last three weeks of 2021.

CGA managing director, UK and Ireland, Jonathan Jones said: “It’s been a very challenging start to 2022 in the hospitality sector, further weakening drinking-out businesses that suffered a collapse in sales over Christmas.”

Customers returning to pubs 

Sales perked up to sit 8% down on Saturday 22 January, indicating consumers are returning to weekend visits into the sector and bringing cautious confidence the end of mandatory Covid passes for nightclubs and big events should give a boost to the late-night sector in particular.

However, despite the lifting of restrictions, such as mandatory face masks, Covid passes for nightclubs and working from home, on Thursday 27 January, drink sales were well below pre-Covid levels on every weekday.
 
In Scotland and Wales, where restrictions have been stricter, drinks sales were 25% and 24% short respectively.

Optimistic next few weeks

CGA’s breakdown of drinks categories shows spirits sales were exactly flat compared to the same week in 2020, however, beer and cider (down 13%), wine (down 18%) and soft drinks (down 12%) were all well behind.

Jones added: “We can be optimistic that the end to Plan B restrictions will encourage consumers to get back to pubs, bars and restaurants over the next few weeks, and kickstart what will hopefully be a much brighter year.

“However, rising costs in many areas have hit both profit margins and consumer spending, and operators and suppliers are going to have to work hard to generate sales in 2022.”