Beer sales sink to 20-year low
Beer sales in the UK slumped to their lowest levels for 20 years in the first quarter of 2020, as the lockdown continues to weigh on the hospitality industry.
The figures
Figures released today by the British Beer & Pub Association (BBPA), the largest brewing and pub body in the UK, showed that beer sales for the first quarter were down 7.2 per cent compared to the same period last year. The 1.5bn pints poured marked the lowest rate since records began in 2000.
The drinks association said the plunge was “entirely down to those in pubs and bars”, which saw sales drop 16.4 per cent year-on-year to a record low of 668m pints.
What it means
The slump in sales comes as the lockdown continues to cripple the hospitality sector.
Pubs were ordered to close on 20 March, following warnings from the Prime Minister as early as 16 March to avoid them.
But data from the BBPA only accounts for the three months up to 31 March — just one week into lockdown — meaning an even larger slump is expected for the second quarter.
Emma McClarkin, chief executive of the BBPA, said the figures highlighted “the immediate impact the Covid-19 lockdown had on the beer and pub industry”.
“These stark figures reveal how the lockdown is having a devastating impact on our world class breweries and pubs. The cliff-edge impact on our sector, when people were told to stop going to the pub and then when they were shut down, is clear to see.”
The hospitality industry is the third-largest employer in the UK, with more than 3.2m employees.
Support for an ale-ing market
McClarkin urged the government to “get Britain brewing again” by providing clarity on when pubs and bars will be able to reopen. The Prime Minister has said they will open “no earlier” than 4 July, but failed to confirm whether the date is concrete.
The trade association warned that pubs need a minimum of three weeks notice to prepare to reopen. It added that the UK’s 2,000 brewers need time to scale-up their operations to start re-supplying pubs with fresh beer, noting that lager takes upwards of three weeks to brew.
“Our pubs and breweries are desperately in need of this clarity,” said McClarkin. “Beer sales were at a record low in the first quarter of this year, so it’s imperative we get brewing our beer again and re-open pubs as soon as possible.”
A decision on when to reopen pubs has been delayed by government uncertainty on whether it is safe to relax the two-metre social distancing rule.
UK Hospitality has estimated that pubs and bars will be limited to just 30 per cent of normal revenue if the two-metre rule is upheld. Outlets will be able to regain around 70 per cent of usual earnings, however, if social distancing rules are reduced to one metre.
Wetherspoons last month announced it will spend £11m making its 875 pubs secure before reopening.
McClarkin said clarity on the issue “will help save pubs from permanent closure, allowing them to start to get back on their feet and protect vital local jobs”.