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On-trade closure causes £400m gin sales loss in UK
Gin sales in the UK fell by £400 million (US$530m) in the 12 months to 3 October 2020 compared with the same period last year, according to new data.
Off-trade gin sales exceeded £1bn (US$1.3bn) for the first time
The Wine and Spirit Trade Association (WSTA) said total alcohol sales during 2020 have declined. In the 12 months to 3 October 2020, drinkers spent £2.2 billion (US$2.9bn) on gin, compared to £2.6bn (US$3.4bn) during the same period in 2019.
The decline was due to Covid-19 restrictions that saw the on-trade close and drinkers turn to at-home alcohol consumption.
Miles Beale, chief executive of the WSTA, said: “Gin has proven to be a real tonic for shoppers wanting to enjoy a bit of down time at home during a turbulent 2020.
“It’s fantastic to hear that some distillers will have benefited from a boost in retail sales, but we have to look at the bigger picture which shows overall gin sales are down by £400 million following the hit taken by the hospitality sector due to the pandemic this year.
“There has been a huge amount of investment poured into the world renowned great British spirit industry in recent years – and we would hate to see jobs created by the gin boom take a hit.”
However, despite the loss of sales in bars, off-trade gin sales in the UK exceeded £1bn (US$1.3bn) for the first time, led by flavoured variants.
The WSTA’s latest Market Report said sales of gin in UK retailers and online rose by 22% in value to £1.2bn (US$1.6bn) this year – equivalent to 75m bottles. The majority of the bottles were flavoured gin.
The trade group said consumers purchased 10m more bottles of gin in the UK off-trade for the last 12 months to 3 October 2020 (Nielsen figures), compared to the same period last year.
In total, the UK off-trade sold around 48m bottles of traditional gin worth £716m (US$948m) in the year to 3 October 2020 – an increase of 10% year on year.
Looking at flavoured variants, 27m bottles were sold worth £456m (US$604m), up 31% on 2019.
The WSTA said off-trade sales of gin have more than doubled in the last five years. In 2015 consumers purchased 29m bottles of gin worth £375m (US$496m).
Beale added the industry needs more support from the UK government to recover from the loss of sales in the on-trade. As such, the WSTA is calling on chancellor Rishi Sunak to cut spirits duty in the spring Budget, which is due to be held on 3 March 2021.