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With the nation gripped with ‘football fever’ as Gareth Southgate and the England team rekindled the nation’s love affair with its favourite sport as well as the hottest summer on record for 40 years, breweries and pubs across the nation worked tirelessly to meet the demand of thirsty punters.
BBPA predicted that England reaching the semi-finals would boost the beer trade by an extra 40 million pints. However, even the optimists among us wouldn’t have predicted the results for the industry. Perhaps it was the soaring temperatures, or maybe the new trend to throw pints in the air in celebration (and with the number of goals England scored against Panama in the Group stage, this could well be the case), but ‘football fever’ led to an increase in 130 million more pints this Summer (June to August) than the same period the year before according to the BBPA’s Sales Volume Survey of its members. To put this into perspective, that is enough beer to fill 30 Olympic sized swimming pools or half a million bath tubs.
Not only is this a significant boost to the beer industry, but the UK economy no doubt benefited as well. BBPA estimates this to be an additional £390 million to GDP, as well as a £71 million contribution in taxes through beer duty, as well as another £37 million in VAT.
Speaking to our members highlighted the undoubtable benefits of tournaments such as this.
Julian Momen, MD, Carlsberg UK
“Taken together, this lovely British summer with England’s creditable performance in the World Cup has been a rare treat; one that’s worked wonders for the beer category. Good for UK brewers, good for stores and good for the great British Pub. But most importantly, good for the beer drinkers across the UK, regular or new, who have been able to enjoy an ice cold lager or maybe a hoppy craft IPA – out in sun, at the BBQ, or watching the footy on the big screen.”
Heydon Mizon, Joint Managing Director, McMullen & Sons
“The world cup was a tremendous event for our more wet led pubs. Belief in the English team was perhaps initially lacking but as confidence grew so did the positive atmosphere and sales with many sites setting a new sales record for the day. We loved each goal as guests seemed to enjoy dispensing their beer into the air in celebration, which is certainly something we wish to encourage.”
Tom Davies, Chief Executive, Brakspear
“It’s been a summer to remember across the Brakspear estate. Our lovely riverside home town, Henley-on-Thames, has been at its very best in the sunshine, and our many rural pubs with gardens have been packed with thirsty customers enjoying the weather. The success of the England team in the World Cup did take a few pubs by surprise and many who’d not planned to show it changed their minds as the home team kept winning! All in all, these have been ideal trading conditions for the majority of our pubs and we could certainly get used it!”
Hearing from pub owners also demonstrated the outstanding benefits of the World Cup and the hot summer for pubs.
Paul Williams, the Duke of Wellington, Twyford
The Duke of Wellington can only hold around 80 people inside and in previous World Cups this was a barrier. This time round, Paul transformed his pub’s car park into a temporary garden with a large outdoor screen. The total cost for this transformation amounted to £1,900, but after promoting the changes on social media the investment paid off. “Trade was up significantly. On a normal weekday we night take £1,000 but during England games we were hitting £6,000”.
Not only did it boost profits on the England games but Paul reported the longer term positive effects of the tournament, particularly that it has significantly helped to market the pub generally as well as introducing to new customers. “We now attract customers from a wider area and continue to use the outside screen when weather permits for Premier League games. We’ve had an overall increase in trade since the World Cup with many new faces enjoying the atmosphere and vibe of our pub.”
“We have a great drinks offering and good support from Brakspear too, but we’ve thrived on the events side. Putting experience of that and other businesses we’ve run previously is how we’ve grown trade. It’s the understanding of your community that I think is key to any offering.”
Paul is looking forward to benefit from future sporting events such as the next big boxing match in September which will benefit from the outdoor screen area, as well as community sporting events such as hosting events for darts teams, cribbage and their sponsored football team.
Simon Chudley, the London Inn, Okehampton
When speaking with Simon, the owner of a freehold pub with a niche sports offering, he explained that he was not anticipating the World Cup. Prior to the tournament, he did not do any specific promotions for the tournament as he was already known by locals as the sports pub.
Simon installed a 16ft screen in the pub’s function room, doubling the area which customers can fit into, and the impact was outstanding. “The first game was a bit slow, but as the enthusiasm grew with England’s success, our sales took off and the pub filled more and more with each game. Over the month, drinks sales were up 200% on the previous June”. Simon reported that during the England vs. Colombia match, his profits were the same as they would be in a week.
Simon discussed the long term effects of the World Cup. “Not only were sales up during the tournament itself, but the hot weather has continued to drive high profits, with a number of new returning customers wanting to drink in the garden. There has also been an influx of people coming to the pub after work to enjoy the weather”.
Simon is looking forward to the rest of the year, the new season of football, the Six Nations rugby and England rugby’s international games.
Paul Oakley
Head of Research and Analysis
Further Reading
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SCOTLAND’S PUBS & BARS CLOSING AT TWICE THE RATE THAN ENGLAND
The Scottish Beer & Pub Association (SBPA) and Scottish Licensed Trade Association (SLTA) have joined forces, calling on the Scottish Government to pass on funding for their sector following the UK Chancellor’s Autumn Statement which will see English businesses receive a 75% reduction in rates bills in the financial year 2024-25. Pubs elsewhere in the UK benefitted from the reduction last year, however the Scottish Government chose not to pass on the reduction – despite Barnett consequentials being given to the Holyrood administration. That has resulted in permanent closures in the sector accelerating at double the rate in Scotland (1.7%) than in England (0.75%). In a joint-statement, the SBPA and SLTA said: “The failure to pass on rates relief last year was a devastating blow for Scotland’s pubs and bars and has resulted in a record number of permanent closures. Already in 2023, with a quarter still to go, permanent closures are more than one-third higher than the whole of last year and double the closure rates across the remainder of the UK.“Many businesses are still saddled with debt incurred during the pandemic and have been unable to recover with the increased financial pressures in the aftermath, including sky-high energy prices, inflationary pressures and impacts to supply chains. “The next financial year will also see increased costs in the form of wages, with increases to minimum wages which will need to be paid for directly by the business. The rates relief in England will help businesses there with this increased cost, but unless the Scottish Government passes on the support, pubs and bars north of the border will be left to entirely fend for themselves and the rate of closures will only increase. “The Scottish Government must ensure that the rates relief is passed on in full or it will cement further closures in the sector, directly resulting in job losses and blows for communities across the country.” A copy of the SBPA and SLTA's budget submission can be viewed here.
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BEER & PUB SECTOR DISAPPOINTMENT AT LACK OF RATES RELIEF IN BUDGET
Commenting on the Scottish Government’s budget announcement today (Thursday), the Scottish Beer & Pub Association (SBPA) has warned the decision not to replicate the business rates relief will be met with disappointment from hospitality operators. Emma McClarkin OBE, CEO of the Scottish Beer & Pub Association said: “The lack of an announcement on business rates relief for Scotland’s pubs is hugely disappointing and will be met with dismay by many operators. Both the UK Government and Welsh Government have ensured that eligible businesses there will receive a 75% discount on rates next year, after a 50% discount for the entirety of this year. In comparison, Scottish businesses have been back to full rates since the summer. This puts Scotland's pubs at a significant disadvantage in their recovery given the challenges they are facing. “We’re glad the Finance Secretary’s has listened to industry and agreed to freeze UBR. This will provide a greater degree of certainty moving into 2023, but does not make-up for the failure to replicate the 75% discount the trade had been hoping for. “From Perth to Paisley, Stranraer to Stornoway, licensed premises are trying desperately to hold on amidst a perfect storm, with increased business costs and customers who are being more careful than ever about what they’re spending, they are being squeezed at both ends and profit margins are being wiped out. “We still desperately need additional action from both the Scottish Government and Westminster to save our much-loved pubs. Staff shortages, pressures throughout the supply chain, rising business costs, and unfathomable energy prices with inadequate support, are all adding together to create an extremely hostile environment for businesses. When coupled with increased regulations, including an unevidenced and unwanted Tied Pubs code, and impacts from Deposit Return, there is still a real uphill struggle for many to survive. Without our pubs and brewers our communities will be poorer not only economically but socially. “Investment is critical to our sector’s survival and growth, and we remain committed to working alongside Government to ensure that Scotland remains competitive, and the sector can continue being a bedrock of the national economy.”
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Beer & Pub sector comment on DRS with one year to go
Commenting on Scotland’s Deposit Return Scheme (DRS) due to go live one year to the day and the release of the producer fees, Emma McClarkin, CEO of the Scottish Beer & Pub Association said: “With just one year to go before Scotland’s Deposit Return Scheme is set to start operating, there is a lot of work still to be done. Establishing producer fees is critical so producers can plan ahead and assess the impact on their businesses. Unfortunately, this will put even more financial pressure on both brewers and pubs at a very difficult time as they battle with soaring energy costs and labour shortages. The combination of a deposit and additional producer fees, themselves very significant amounts, will particularly impact products such as beer sold in smaller single-serve containers, often as part of multipacks. “The Scottish Government have shown that they are mindful about the cost of doing business and have supported calls for a range of measures, but they need to be acutely aware that the producer fee is just one of a myriad of costs attached to a DRS. Labelling, new IT systems, staff training, security, storage, and fraud risks will all come with significant expenditures. There also remains several elements still to be finalised, such as VAT treatment and the on-line takeback model, that with just a year to go is causing significant concerns among businesses. “We are committed to working alongside the Scottish Government and other stakeholders to deliver the best possible DRS, but without wider relief to the costs of doing business currently we risk losing many of Scotland’s brewers and pubs before DRS even starts.”