Huge rise in beer off-sales taking toll on pubs

Published on Sunday 7 September 2008 22:20

BRITAIN'S pubs are in such a decline that beer sales in bars will be overtaken by those in shops within the next 12 months, reversing centuries of tradition.

Some cans of beer are cheaper now than they were 20 years ago, helping to raise off sales by 5 per cent a quarter.

Sales in pubs, clubs and similar licensed premises have fallen by 8-9 per cent a quarter this year. Prices have risen by up to 10p a pint because of increased production costs, transport and fuel prices and taxes.

The smoking ban and credit crunch have also kept beer drinkers at home.

The editor of the trade publication the Morning Advertiser, Andrew Pring, said: "Tesco, Asda and the rest of the discounters have been brilliant at stealing our business."

The change has prompted fears for the future of the pub. Figures show that five pubs a day closed in the first half of 2008.

The Scottish Licensed Trade Association has called for action to save pubs, which it says are the "heart and soul" of communities. Paul Waterson, its chief executive, blamed supermarkets for "irresponsible pricing".

At present 55 per cent of beer in the UK is sold in bars, and 45 per cent in bottles and cans as off-sales, but the gap has been closing, with off-sales increasing by 5 per cent a quarter. Supermarkets accounted for only 5 per cent of beer sales 30 years ago.

The market analysts CGA Strategy today said that 36 on-sales premises closed every week in the UK.