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08/10/2010 - Drink sales below pre-slump levels

Alcohol sales levels are far lower than they were before the recession kicked in, despite the fact that some particular drinks are selling well again, new figures have revealed.

Beer sales are still on the decline, according to a report by the GMB union. But the study added that sales of spirits, cider and wine in stores, off-licences and pubs are increasing.

In the nine months to June, alcohol consumption rose by 4.2%, but it remained about 8% below pre-recession levels, the report concluded.

Hayley Brennan of the GMB said: "These figures show the first signs of a recovery in alcohol volumes in the UK since the recession hit sales. They also show no let up in the decline in beer sales.

"I hold regular meetings with tied pub tenants across the country every week and they report that the overcharging for rents by pubcos is still killing the pub trade.

"Customers are simply refusing to pay the additional pound per drink to pay these inflated rents and are deserting pubs in droves.

"It is no exaggeration to say that the British pub is on life support and will not survive unless the poison of high rents and high prices injected by the pubcos is removed.

"Tenants are desperate and many fear that their pubs will not survive the rate of VAT increasing to 20% in January unless the OFT report due this month recommends action by Government to end the market abuse by pubcos."

Copyright © Press Association 2010

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