Drinks sales continue downward spiral
Average sales by value in managed groups were 5% down in the week to Saturday 14 September, the latest Daily Drinks Tracker from CGA by NIQ showed.
It followed one of the biggest drops of 2024 across the previous week.
Sales were negative on all seven days of the week, though Saturday (14 September) was slightly better at only 2% down.
Below expectations
The week wasn’t helped by widespread cool and grey weather that kept consumers away from pub gardens and terraces after a warmer spell in late August, CGA added.
Also for the second week in a row, wine was the best performing category, with sales fractionally up by 0.1%.
Beer (down 2%) had a fair week, but cider (down 11%), soft drinks (down 8%) and spirits (down 14%) all suffered by comparison to September 2023.
CGA by NIQ commercial leader UK& Ireland Rachel Weller said: “Despite a week-on-week improvement, drinks sales are still short of what operators and suppliers might expect in September.
Cool weather
“Cooler weather isn’t helping, and we may also be seeing a readjustment of some consumers’ spending after their summer holidays.
“While inflation, household expenses and interest rates are generally moving in the right downward direction, it takes time before that translates into freer spending in pubs, bars and restaurants.”
The most recent CGA RSM Hospitality Business Tracker earlier this week also showed managed hospitality groups in the UK achieved year-on-year sales growth of 1.3% last month, 1.1 percentage point the current headline rate of inflation.
CGA by NIQ director hospitality operators and food EMEA Karl Chessell said: “Consumers remain eager to eat and drink out when they can, but operators will be hoping they will feel confident enough to spend more freely as we move towards the crucial final quarter of 2024.”
