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 more06 December 2018
The British Beer & Pub Association has welcomed new research that shows UK brewers are amongst the biggest and best in Europe. However, the tax burden they face compared to their European counterparts is holding them back, it argues. The new research, released by The Brewers of Europe, finds that the UK is one of the biggest producers of beer in Europe, brewing 4 billion litres of beer – equivalent to 10% of the total production in Europe[1]. This figure places the UK only behind Germany, which produces 9.3 billion litres of beer[2]. As well as being one of the leading brewing nations, UK drinkers also pay the most tax on their beer, stumping up almost 40% of all beer duty in Europe[3]. The BBPA argues that this shows the growth potential the UK brewing sector has, and if taxation on beer in the UK was brought closer in line with that of Germany, it would see the sector grow even more. At present, beer duty in the UK on a pint of 5% ABV beer is 54 pence[4]. In Germany, the duty on the same pint would be just five pence[5]. The beer duty freezes put in place by the Chancellor in his two most recent Budgets help the UK’s brewing sector to grow and invest. Whilst the UK may be the second largest beer producer, in terms of per capita consumption it is way down on the list, and its on-trade and off-trade split is still healthy. Without doubt the great British pub still has an important part to play in this. To build on the UK brewing sectors’ leading position in Europe and catch-up with Germany, as well as to help pubs, the BBPA continues to ask for a cut or freeze to beer duty. Brigid Simmonds, Chief Executive of the British Beer and Pub Association, said: “We should be proud that the UK is one of the biggest producers of beer in Europe, brewing 10% of all the beer produced. Considering that we pay some of the highest tax on beer in Europe, this is no mean feat. “The beer tax burden is harming UK brewers and holding back growth, as shown by the gap between the UK and Germany. Germany’s beer tax is approximately twelve times less than that of the UK and as a result, it brews over twice as much beer as us. “Recent freezes on beer duty by the Chancellor have been proven to support UK brewers’ growth, help pubs stay open and increase revenue for HMRC. It’s a no brainer to reduce beer duty, so let’s hope the Chancellor continues to recognise this.” [1] 2018 edition of Beer Statistics, compiled from data collated by national brewers’ associations through surveys carried out by The Brewers of Europe and Eurostat. The full report (including charts and visuals) are available here with the password: stats4press [2] As above [3] BBPA data [4] As above [5] As above
03 December 2018
The British Beer & Pub Association has today supported Government action to ban plastic straws and stirrers. A ban would build on voluntary initiatives by the pub sector to remove plastic straws and stirrers. Voluntary initiatives to reduce and remove plastic straws from the pub sector have so far been extremely successful, they have highlighted the potential benefits of the removal of plastic straws and reflected consumer demand for this outcome. BBPA members have driven voluntary initiatives to find plastic straw alternatives, from practical initiatives such as only offering plastic straws on an ‘on-demand’ basis, to the development of straws made from seashells. Along with other industry bodies and in particular the British Institute of Innkeeping, the BBPA has supported the Last Straw campaign, to reduce the numbers of plastic straws used in pubs across the country. To ensure consistency, the BBPA believes a plastic straw ban should be applied across the food and drink sector (both in retail and hospitality) and cover all types of plastic straws, including compostable and biodegradable plastic straws. However, the BBPA has argued that groups with accessibility needs must be able to access plastic straws. These should not only be available in pharmacies, but also hospitality outlets so that those with accessibility needs can continue to enjoy the use of pubs as much as everybody else. Brigid Simmonds, Chief Executive of the British Beer and Pub Association, said: “It is important we all do our bit to reduce plastic waste and that is why we welcome the Government’s proposals to ban plastic straws and stirrers. To help pubs reduce their plastic waste we have already produced guidancefor licensees as well.”
03 December 2018
Beer sales in the third quarter of 2018 were up 4.4% on the same period in 2017, according to the latest Beer Barometer sales data from the British Beer & Pub Association. Pubs (referred to as the On-Trade) in particular benefited from the much-needed boost, enjoying their first third quarter growth in over 15 years, with sales increasing by 0.9 percentage points. This increase in sales was 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. It was also driven in part by the good weather over the summer months, which encouraged people to visit their local and enjoy the pub garden. In supermarkets and off-licenses (referred to as the Off-Trade), beer sales in the third quarter of 2018 went up by 7.6% on the same period in 2017. Although the World Cup was a welcome boost to pubs, it only comes around once every four years. This means pubs cannot rely on it for growth. To improve the long-term sales of beer and the viability of pubs, appropriate measures are required by the government. The Chancellor’s decision to freeze beer duty and cut business rates for thousands of pubs in his most recent Budget was a very welcome boost for the industry. Uncertainty around Brexit, however, is a major concern for the brewing and pub sector. With consumers unsure of what the final outcome of Brexit will be, pubs have started to see customers tighten their purse strings at the bar. Clarity on the transition period from March 29thonwards and a strong steer on the future relationship with the EU is needed to reassure brewers, publicans and consumers alike. Speaking on the Q3 2018 Beer Barometer, Brigid Simmonds, BBPA Chief Executive, said: “It’s certainly good to see that beer sales are doing better overall. England’s success at the World Cup and good weather undoubtedly helped. “The Chancellor’s decision in the Budget to freeze beer tax and lower business rates for thousands of pubs will make a huge difference to the viability of the sector moving forward, but Brexit looms large though and brewers and publicans alike need certainty. Clarity on the transition period from March 29thonwards and a strong steer on the future relationship with the EU would be a boost to the trade and beer sales. A no deal Brexit should be avoided at all costs.” UK Quarterly Beer Barometer Q3 2018
29 November 2018
The British Beer & Pub Association has welcomed Government plans for the UK’s first carbon capture usage and storage (CCUS) project, creating the ability to turn dirty fumes into delightful beer. The plans are in part a result of the BBPA calling for the Government to put a stop to the CO2 shortages experienced this summer, which affected some of the brewing and pub sector during the World Cup. Commenting on the announcement of the carbon capture project, Brigid Simmonds, Chief Executive of the British Beer and Pub Association, said: “The BBPA has been working with the wider food and drink sector to look at the CO2 shortages we experienced over the summer. Given the demand for CO2 from a range of industries in the UK and the current state of the supply chain to provide it, there is a very real danger that such shortages could happen again. “We therefore welcome this Government investment for the capture of CO2. It will allow us to turn dirty fumes into delightful beer, ensuring CO2 shortages don’t affect the beer and pub industry in the future. Time is of the essence of course, so we need this new technology and investment as soon as possible.” ENDS For further information, please contact: Nick Lawrie, Digital Communications Manager: 020 7627 9156/ 07824 359 013 David Wilson, Director of Public Affairs: 020 7627 9151/ 07557 405 815 Adam Beazley, Communications & Campaigns Officer: 020 7627 9155 / 07507 836 708 Notes to editors: The British Beer & Pub Association is the leading body representing Britain’s brewers and pub companies. The Association is more than a century old and was originally founded as the Brewers’ Society in 1904. Our members account for some 90 per cent of beer brewed in Britain today, and own around 20,000 of the nation’s pubs.
29 November 2018
The BBPA has responded to a commitment from the Secretary of State for Digital, Culture, Media and Sport, to deliver a Tourism Sector Deal. The deal will focus on ensuring tourism and hospitality is a career for life, keeping the UK as the most accessible tourism industry in the world and sharing data and increasing accommodation capacity. Responding to the commitment, British Beer and Pub Association Chief Executive Brigid Simmonds commented: “After a lot of very hard work to secure this deal for our industry, this is a great vote of confidence from the Government in our sector. Pubs are third on the list of things to do for overseas visitors to the UK; seven out of ten visit a pub whilst they are here. “As we prepare to leave the European Union, we must concentrate on making our sector one of choice for employees. Recruitment and retention are vital when as it stands 24% of our employees come from overseas, which rises to over 80% in metropolitan areas. “The BBPA is already chairing a group across the tourism sector on retention, and there is much work to do to secure the deal, but on the anniversary of the introduction of the Industrial Strategy, it is good to see such support from Government and VisitBritain.”
26 November 2018
Responding to a new report by the Office for National Statistics (ONS) titled the Economies of ale, British Beer and Pub Association Chief Executive Brigid Simmonds commented: “This new report from the Office for National Statistics (ONS) reflects our own data and research which shows that many pubs are struggling. “Pubs face a number of cost pressures, from high taxes in the form of beer duty, VAT and business rates, to wage increases and food inflation. This means they are under increasing financial pressure from every angle, which is driving closures. “The pub sector is proud of its role as a major UK employer and so the ONS data showing that pubs are employing more people than ever before is welcome news. This reflects that many smaller pubs are closing and larger pubs will inevitably employ more people. Pubs are also diversifying their offer to create an experience that appeals to the changing needs of consumers, hence the transition towards more food and entertainment-led establishments. Pubs now serve one billion meals each year and have 50,000 bedrooms. They are a vital part of both our international and domestic tourism market. “Unless more is done to help alleviate the cost pressures pubs face however, they will continue to close and jobs will be lost. Under the beer duty escalator alone (2008-2013), beer tax rose by 42%. During that time beer sales fell by 24% in pubs. This caused 5,000 pubs to close. “The Chancellor’s decision in the Budget to freeze beer tax and lower business rates for thousands of pubs will make a real difference to the viability of the sector moving forward – particularly the local, community pubs that the ONS data shows are disappearing. “More still needs to be done though to save those pubs that are most at risk from closure. This is why we continue to support the Long Live the Local campaign, which celebrates the vital role local, community pubs play in our lives across the UK, and calls on the government to reduce the cost pressures they are under.”