Covid-19 / 15 March 2021
SBPA reveals devastation to pubs and brewers one year on from first COVID-19 lockdown, reiterates Government must ensure pubs can operate without restrictions as soon as possible One year on from the First Minister ordering the first COVID-19 lockdown, which forced pubs to close, the Scottish Beer & Pub Association has revealed the devastation the nations’ brewers and pubs have faced. The trade association has revealed that 200 pubs are estimated to have been lost forever, 210 million pints in beer sales lost due to a full year of either forced closure, or trading under severe restrictions, and £820 million in trade value wiped out from the sector in beer sales alone. Since the first lockdown in March 2020, pubs and other hospitality businesses have been amongst the hardest hit. They have also faced severe restrictions to their trade during other periods of being “open”, including level restrictions that ultimately forced many to stay shut or open but under conditions that made their trade unviable due to the closing times and other rules. Looking ahead to the First Minister’s expected announcement tomorrow, the SBPA has urged the Scottish Government to give the sector hope by aligning closely to the unlocking plans in England, which indicate that pubs will reopen outdoors from April 12th, followed by indoors from May 17th and with all restrictions lifted by June 21st. Emma McClarkin, Chief Executive of the Scottish Beer & Pub Association, said: “Our sector has been devastated by COVID-19 and the lockdowns. It has been a year to forget for the Scotland’s pubs and bars. “It is estimated that 200 pubs have been lost forever. 210 million pints in beer sales have also been missed, wiping out £820 million in trade value from the sector. “Sadly, we still haven’t seen the full extent of the damage yet and won't do for some time until things really do go back to normal. And by normal, I mean a return to what life was like pre-covid. “Whilst we continue to assess the full damage to our sector, I urge the First Minister to give our businesses the hope that they desperately need by providing a viable route out of lockdown tomorrow. The previously levels were entirely unviable for the majority of hospitality businesses, and they are desperately hoping for a more straight-forward approach to unlocking this time. “We also hope the Scottish Government will look at providing more support for our wet-led community pubs who, although grateful for all the support they received, will not benefit from the VAT cut to food in the same way restaurants will. Local wet-led pubs have been amongst the worst affected by the virus so it's important the Government goes that little bit further for them. “It is becoming all the clearer that the Government must ensure all our pubs are fully re-opened as early as safely possible. This is when their recovery will really start and until then we stand to lose more pubs and community assets.”
Read more21 February 2019
Commenting on the analysis of responses to the Scottish Government’s consultation on the introduction of a deposit return scheme, the Scottish Beer & Pub Association – the leading trade association for brewers and pub companies in Scotland – has welcomed the acknowledgement of key issues for the nation’s pubs and brewers. CEO of the Scottish Beer & Pub Association, Brigid Simmonds OBE said: “It’s very welcome to see the concerns raised by the SBPA being echoed by others in this consultation process, particularly around the unique issues for alcohol products and our wider sector. “It is imperative that any scheme is well designed and robust for it to be a success. Identifying potential issues such as the impact on our sector will help ensure any system meets our collective ambitions, whilst also avoiding potential harms to industry or other policy areas. “Placing a flat deposit on alcoholic products severely risks undermining the Scottish Government’s policy of minimum-unit pricing by making higher strength products relatively cheaper than lower strength products at the point of sale. “It is also our opinion that any system must be outward facing, and we encourage the Scottish Government to work with DEFRA for a UK-wide solution. A Scotland-only system risks creating a number of trade barriers which would impact disproportionately on small and medium sized producers, whilst also risking the record growth achieved in Scottish exports. “Our industry takes environmental responsibility very seriously and fully supports the goal of improving the circular economy, reducing litter rates and increased sustainability through recycling. We look forward to working proactively with the Scottish Government in the next stage of this process and in delivering a system that works for everyone.”
21 February 2019
The British Beer & Pub Association (BBPA) has today commented on the publication of a report by the Housing, Communities and Local Government Committee on high streets and town centres. The report follows an inquiry to which the BBPA gave evidence. Commenting on the report, Brigid Simmonds, Chief Executive of the British Beer & Pub Association, said: “As a member of the Government’s Future High Streets Forum, the BBPA has called consistently for the Government to help high streets and town centres. We were also delighted to give evidence to the Housing, Communities and Local Government Committee on the matter. The Great British High Street’s competition and the new fund for high streets announced in the Budget are both very welcome initiatives, but there is more to be done. “As highlighted in the BBPA’s evidence to the Committee, the current business rates system penalises businesses like pubs for investing in their property, as improvements lead to rates rises. The Committee’s recommendation of exploring the introduction of a 12 month ‘holiday’ on these rates increases is most welcome. This would be a positive step forward in regenerating high streets and town centres across the UK if implemented. “The report also recommends replacing business rates for bricks and mortar businesses with a sales tax or an increase in VAT. As always, the devil is in the detail as to whether this would be effective. In any case, a replacement of business rates would need to address the fact that pubs and high street businesses are unfairly taxed, whilst online retailers are not contributing enough. As the report notes, pubs alone pay 2.8% of the total business rates bill, despite accounting for just 0.5% of total rateable turnover[1]. We welcome the call for the Government to come forward with views on how business rates could be reformed by October this year. Without doubt a full review is required. “The Chancellor Phillip Hammond’s decision to cut business rates for high street and other small businesses by one third for the next two years in the Autumn Budget was most welcome, as was the announcement of the £675 million Future High Streets Fund. These actions, combined with a number of the recommendations outlined in the Housing, Communities and Local Government Committee’s report, are a welcome step towards securing the future of the high street and the pubs that serve them.”
20 February 2019
The Scottish Beer & Pub Association (SBPA) – the leading trade association for brewers and pub companies in Scotland – welcomed MSPs to the Kilderkin pub on Edinburgh’s Royal Mile last night (Tuesday 19th) in a celebration of the great Scottish Pub. The SBPA also used the opportunity to launch and highlight a series of initiatives to be developed throughout 2019, which will give operators of tenanted and leased-pubs added support and assistance in running their business. These new initiatives will supplement the 2016 Scottish Code of Practice, which expanded on existing protections in place under a Code of Practice that had been in operation on a UK-wide basis. The four initiatives are: Strengthening and promoting tenant rights through the creation of the voluntary Scottish Pubs Governing Body (under the auspices of the Pub Governing Body) Supporting Scottish Communities by putting pubs at the heart of them Offering tenants greater flexibility to sell local beers & ales Funding the research and publication of an annual independent ‘State of the Nation’ report on the Scottish pub sector Commenting on the launch, CEO of the Scottish Beer & Pub Association, Brigid Simmonds OBE, said: “I was delighted to welcome a good number of MSPs from across the parties at Holyrood to Kilderkin on the Royal Mile last night. “As an industry, we are committed to supporting our tenants in running the best pubs in Scotland and this package of initiatives – which will be developed and built-on throughout the year – backs this up by providing a range of assistance. We are continually reviewing the support we provide, as we know our member businesses cannot prosper unless individual, local pubs also succeed. “The initiatives include the creation of a new Scottish Pubs Governing Body (under the auspices of the Pub Governing Body) to build on the first ever bespoke Scottish Code of Practice launched in 2016. They also include greater support for communities with the potential for new services, such as Pub is the Hub, and greater flexibility to stock local products. “Pubs still require the support of parliamentarians and governments to be successful though, and that is why we launched this with MSPs at the heart of Holyrood. The industry has faced an uphill battle in recent years with numerous pieces of legislation and regulations impacting the viability of running a successful pub. “We need to make sure that any legislation that might impact our sector is carefully considered and with the support of MSPs we can continue to grow this industry, which supports 67,000 jobs and adds £1.66 billion to our economy every year.” Industry Initiatives 2019 Document
18 February 2019
The British Beer & Pub Association has today welcomed the launch of various consultations by the Government to cut waste and plastic, but has urged that a pragmatic approach is needed to ensure that objectives are achieved in the most cost-effective manner that work across the UK. Responding to the launch of the consultations, including a consultation on a proposed Deposit Return Scheme, Brigid Simmonds, Chief Executive of the British Beer & Pub Association, said: “Brewers and publicans fully support efforts to cut waste and plastic and so we welcome these consultations. However, a pragmatic approach is needed to ensure waste is reduced in a cost-effective manner that works across the UK. “We support a Deposit Return Scheme (DRS) for plastic bottles, but we also believe that enhancements to the current recycling schemes which collect cans and glass from residential and business properties can ensure we continue to achieve the high targets set by government. “There is currently a separate consultation on a DRS in Scotland, but the BBPA believes that a UK-wide system is crucial to making a DRS a success. This would avoid unnecessary costs and significant fraud risk in what is an integrated UK supply-chain and market for drinks containers. Evidence from other countries also shows that an industry-run, not-for-profit, scheme would likely deliver the most cost-effective results. “The proposed changes to Producer Responsibility Obligations will, according to the consultation, lead to a tenfold increase in the cost of PRNs (Packaging Waste Recovery Notes). This is significant for our industry as the beer and pub sector are major contributors to the current regime and will now bear the full cost of collection, recycling or disposing of waste. It is therefore important that any changes brought about by these consultations fully take into account the impact on businesses of all sizes, many of whom in our sector are already operating under significant regulatory burdens. We’ll be making this clear in our responses to these consultations.”
14 February 2019
The annual Hospitality Works campaign has today launched for 2019, promoting hospitality as a sector where jobseekers can find gainful employment and a successful career. With the support of national hospitality employers, the campaign will be led by the Department for Work and Pensions, The Springboard Charity, UKHospitality and the British Beer and Pub Association. It will showcase the great career opportunities available across the hospitality sector, which currently faces a skills shortage. Hospitality Works 2019 will centre around two ‘Big Bash Events’ held in Manchester and Leeds. The Leeds ‘Big Bash’ event will kick off on 20th of February and the Manchester ‘Big Bash’ event will take place on 8th of March. Both events will provide opportunities for a range of employers to meet with their local Job Centre Plus and potential future employees. The Hospitality Works campaign has created in excess of 8,000 work placements since its conception in 2015. With the set-piece ‘Big Bash’ events and countless other events around the country planned, a record number of jobseekers are expected to find themselves a career in hospitality this year thanks to the campaign. Springboard’s Chief Executive Anne Pierce CBE commented: “In an industry where skills shortages continue to be challenging and labour shortages heading rapidly to crisis point, there is an acute need to take positive action to attract more people from the UK into the hospitality industry and fill the growing number of vacancies – particularly in the cities. This is why Springboard will be, once again, joining DWP as a major partner in Hospitality Works, rallying our industry partners, ambassadors and delivery teams to engage, inspire and influence jobseekers to join our fantastic industry, through a range of national and local inspirational activities and events in partnership with job centres in every region of the country.” Brigid Simmonds, Chief Executive of the British Beer and Pub Association commented: “The BBPA are delighted to once again support the Hospitality Works campaign. Our industry needs to do more to recruit UK citizens to our workforce whether behind the bar or in our kitchens, as pub chefs, or wider roles within the team. I am pleased our members are taking part in this important campaign up and down the country, working with Job Centres and potential employees. “Campaigns such as Hospitality Works do a great job of promoting the huge variety of career options which the hospitality sector can provide, enabling those looking for work to embark on an exciting and rewarding career.” Hospitality Works 2019 will also be supported by some of the biggest employers in the industry including Marston’s, McDonalds, Hilton, Ei Group, Caffé Nero, Bourne Leisure and Yo! Sushi. They’ll be taking part through visiting schools, holding events at job centres and welcoming jobseekers into their businesses for a taste of hospitality and to understand what opportunities are available to them within the sector. If you want to participate as a business/employer, please email hospitality.works@dwp.gsi.gov.uk or follow the #JobsWithASmile hashtag on social media.
11 February 2019
Total beer sales increased by 2.6% in 2018 across the on and off trades This was the biggest growth in year-on-year beer sales for 45 years In the off trade (e.g. supermarkets and convenience stores), beer sales increased by 4.7% year-on-year In the on trade (e.g. pubs), beer sales increased by 0.1% year-on-year Sales of beer in 2018 were up 2.6% on 2017, according to the latest Beer Barometer sales data from the British Beer & Pub Association (BBPA). The increase marks the biggest year-on-year sales growth of beer in 45 years. In the off trade, full year 2018 sales of beer increased by 4.7% on full year 2017 sales. In the on trade, full year 2018 sales of beer increased by 0.1% on full year 2017 sales. Despite a difficult start to 2018 for the beer and pub sector, with total sales of beer in Q1 2018 down by 1.7% on the same period in 2017, consistent growth in Q2 (up 3.6% on Q2 2017), Q3 (up 4.4% on Q3 2017) and Q4 (up 3.1% on Q4 2017) meant it was a record year for beer sales. Increased beer sales in Q2 and Q3 2018 were driven by the success of England at the World Cup, which saw the national team reach the semi-finals of the tournament, driving footfall in pubs where fans watched the games. Increased beer sales in Q2 and Q3 2018 were also driven in part by good weather, which encouraged people to get out and visit their local, making full use of the pub garden. Although the World Cup was a welcome boost to pubs this year, leading to a notable increase in beer sales, it only comes around once every four years. This means pubs cannot rely on it for growth. Good weather cannot be relied on by pubs or off trade businesses to boost beer sales either. The Chancellor’s decision to freeze beer duty in his most recent Budget was therefore very welcome and appears to have had an immediate impact on the industry, with beer sales increasing in Q4 2018. In particular, pubs benefited from a strong end to 2018 with beer sales growing by 2.2% in Q4 2018 compared to the same period in 2017. This was the first time Q4 beer sales grew in the on trade since 2011. The Chancellor’s decision to freeze beer duty in the Autumn 2017 Budget will also have boosted beer sales in 2018 overall. Brigid Simmonds, Chief Executive of British Beer & Pub Association, said: “2018 has been a good year for beer and pubs. Considering the heavy cost burdens the industry faces from high beer duty, business rates and rising costs in general, it’s great to see beer sales doing the best they have for some years. “A significant amount of the growth in beer sales in 2018 can be attributed to the England team’s performance at the World Cup and the good weather over the summer months. “The Chancellor’s decision in the 2018 Autumn Budget to freeze beer tax also appears to have had an immediate impact, with sales of beer in pubs growing in the last quarter of 2018 by 2.2%. This shows just how important reducing the beer tax burden is to boosting sales of beer and helping pubs with their footfall. “As the UK’s alcoholic drink of choice, which continues to have a much bigger, positive impact on the UK economy than any other drink, it is important that beer continues to do well and that the Chancellor continues to support pubs.”