UK on-trade suffers summer decline, says WSTA

The UK’s on-trade industry has suffered a drought this summer, with volume sales falling 6%, according to new figures by the Wine and Spirits Trade Association (WSTA).

The WSTA has called for the UK government to scrap the duty escalator which it claims distorts on and off-trade results

The WSTA Market Report draws on data by Nielsen, CGA Strategy, and the Wilson Drinks Report collated over the past 12 weeks.

The association claimed that although the report showed that value sales in both on and off-trade were up 2% for the year, this was attributed to year-on-year duty increases.

The off-trade received a 3% boost over the last quarter thanks to an increase in sales of cider, beer, and sparkling wine, but annual sales dipped by 2% overall.

The WSTA said that duty increases on all alcohol products by 5.2% in the UK Government’s 2013 Budget nullified the 2% increase and squeezed both consumers and trade.

WSTA chief executive Miles Beale said: “While the hot weather provided a temporary welcome boost for the off-trade, on-going duty increases and squeezed consumer spending continue to damage the WSTA member businesses.

“Given the record hot summer, the fall in sales in the on-trade is a surprise and underlines the need for an early end to the alcohol duty escalator to provide some relief for struggling pubs, bars and restaurants.”

The reports shows that in the off-trade, spirit sales remained unchanged over the past 12 weeks, but sales of liqueur were up 12%.

In the on-trade, volume sales were down 5% for the year and 6% in the 12 week time period. RTD sales also fell by 3% over the year and 24% in the last 12 weeks.

However spirit volume sales in the on-trade received a 5% boost over the last 12 weeks, and a 1% for the year, with malt whisky demonstrating its on-going popularity through a 45% volume increase in the short term.