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 more31 July 2018
The BBPA has today commented on the Home Affairs Committee’s report on migration, titled: “Policy options for future migration from the European Economic Area: Interim report.” Commenting on the report, Brigid Simmonds OBE, BBPA Chief Executive, said: “It is vitally important for the beer and pub sector that there is a clear focus on immigration policy and this is why we have previously welcomed the Government’s announcements on applications for settled status, as 24% of all employees across the BBPA’s membership come from abroad, of which 17% are from the EU. “The BBPA shares the concerns of the Home Affairs Committee however, regarding the lack of debate on policy options to date and that as soon as is practical after the Migration Advisory Committee reports, the Government must bring forward detailed immigration policy options for consultation. It is vital that businesses are able to access the skills and people required to support economic growth and that there is greater certainty for this. As part of this, the BBPA also supports an overhaul of the UK’s arrangements for non-EU nationals. “As recognised by the Home Affairs Committee, there is now a greater understanding by the electorate of the benefits of overseas workers in the UK and the role they play. For brewing and pubs, this means there needs to be a review of the tier system. There is a real shortage for pubs when it comes to recruiting chefs, who would not qualify for tier two status. In this regard, it has been good to see the Government’s proposals that the Youth Mobility Scheme be extended to the EU as part of the recent announcements following the Chequers Summit.”
30 July 2018
Beer sales in the second quarter of 2018 were up 3.6% on the same period in 2017, according to the latest Beer Barometer sales data from the British Beer & Pub Association. The increase in sales of beer in Q2 2018 was driven by the off-trade (e.g. supermarkets), which saw beer sales go up by 7.7% on the same period in 2017. In comparison, the on-trade (e.g. pubs) did not see growth in beer sales in Q2 2018 – with sales of beer decreasing by 1.0% year-on-year instead. Despite this, the fall in on-trade sales in Q2 2018 was a significant improvement on Q2 beer sales from the last ten years, where the average fall in on-trade beer sales has been 3.7%. The improvement is due to the boost to pubs from good weather during Q2 2018, as well as the beginning of the FIFA World Cup and the continued positive effects of the beer duty freeze implemented by the Chancellor in November 2017. Although the FIFA World Cup is a welcome boost to pubs, it only comes around once every four years and so measures taken by the Chancellor to cut or freeze beer duty year-round are far more influential for the long-term sales of beer in pubs and pub viability. With the very real threat of a beer duty increase on the cards in the next Budget, the campaign “Long Live The Local” – from Britain’s Beer Alliance – has been launched, calling for a cut in beer tax to decrease the significant cost pressures pubs face and help give them a boost. Speaking on the Q2 Beer Barometer, Brigid Simmonds OBE, BBPA Chief Executive, said: “It’s certainly good to see that beer sales are doing better overall. There is a very real threat however that the Chancellor will increase beer tax again in the Budget later this year, which would be a huge backward step after so much progress has been made since he froze beer duty last year. We need further cuts in beer tax to help pubs and the great British brewing manufacturing industry.” David Cunningham, Programme Director of Britain’s Beer Alliance, which is behind the “Long Live The Local” campaign, said: “The ‘Long Live The Local’ campaign celebrates the vital role pubs play in people’s lives and their communities. It also highlights the range of tax pressures that pubs face and encourages pub goers to go to their local and call on politicians to cut beer tax. “Pubs face an unprecedented range of tax pressures including beer duty, which means that £1 in every £3 spent in a pub goes to the taxman. This clearly is a factor behind declining beer sales in pubs, pub closures and job losses.” UK Quarterly Beer Barometer Q2 2018
Paul Oakley | 25 July 2018
Forty-seven companies contributed to this year’s Annual Barrelage Survey, the industry’s definitive measure of the UK beer market. The headline result being that beer sales were 0.7% higher in 2017 compared to the previous year. As usual the tables and report are free to all members of the BBPA, if you would like to receive a copy then please contact me. But non-members don’t need to be too concerned - the report is available in our shop here. So just how much beer was sold? In total, Brits enjoyed over 7.75 billion pints of the nation’s favourite drink, that’s 21.2 million pints every single day. Or to put it another way 28.9 million kegs plus 4.9 million casks plus 3.2 billion cans plus 3.3 billion bottles. Or 1,762 Olympic swimming pools! So what insights can we gauge from the report? Here are three interesting insights that paint us a picture of the world of beer in 2017. Pubs are under increasing pressure The long term trend seeing people favour a beer at home over their local has continued. 53.1% of beer sold in the UK was sold through the off trade in 2017, the highest this figure has ever been. Of course there are many social factors driving this trend. The home is a very different place than it was in 2000 due to improvements in home technology. People also tend to have less leisure time than they used to, as well as the rise of social media which means you no longer need to leave your house to see friends. However, what is surely the biggest driver is the rapid increase in the price of a pint in pubs. In fact, in the last ten years, the price of beer in the on trade has increased by 28.6%. This compares with an increase of 8.5% in the off trade. Pub-specific cost pressures like business rates, which sees pubs pay an unfair burden of the total high street bill. As well as the National Living Wage and VAT means it looks likely that this worrying trend will continue into the future. Pubs are also reeling from crippling duty increases of over 42% between 2008 and 2012. Three cuts and a freeze had relieved some pressure on pubs since then but last year’s 3.9% hike has increased the challenge further. Draught Ale innovation Back in 2000 Nitro Keg Ale was the most popular style of keg ale with 42.2% market share. Fast forward to 2017, Nitro Keg Ale volumes have fallen 69.2%. Contrast this with Cask Ale which has been relatively resilient to market pressures over the same period and now comprises 57.9% of the market for draught ale. However, in 2017 it is Traditional Keg Ale which is the category in growth with volumes increasing by 9.6% last year. There is certainly a large appetite for draught ale currently and this “new wave” of keg beers is being driven by new tastes in the market but also through innovation by new and existing brewers. Changing tastes are always difficult to predict and it will be interesting to see if this continues in future years. The rise of No and Low Alcohol Beers No and Low Alcohol Beers have always been of interest to consumers and industry alike, however sales remained stagnant for a long time. Since 2013 we have observed an exponential rise in sales of these beers. In fact, in 2017 alone volumes increased by 25.9% while volumes have grown by a staggering 150% in the last four years. No and Low still only account for 0.5% of the market however so there is room for even more growth. Whether this trend is driven by demand for a healthier alternative or an improved supply of quality products through brewing innovations we welcome this interesting trend.
18 July 2018
The British Beer and Pub Association (BBPA) has today welcomed the appointment of a new panel of experts to diagnose the issues currently affecting the health of the UK’s high streets. The panel will also advise on the best measures to help high streets thrive both now and in the future. The appointment of the expert panel kickstarts Great British High Street Week, a week dedicated to celebrating the high street to promote The Great British High Street Awards 2018. The week will gather pace today with an event in parliament to celebrate Great British High Streets. Commenting on the appointment of the expert panel, BBPA Chief Executive Brigid Simmonds said: “This expert panel, which will look at the issues affecting our high streets and what can be done at a practical level to help them, is a fantastic way to kick-off Great British High Street Week. “We especially welcome the inclusion of NewRiver Director Emma MacKenzie on the panel, who has expertise in both the retail and pub sectors. The successful future of our high streets is inextricably linked to leisure and hospitality, which increase dwell time on the high street. The great British pub therefore has a key role to play in the future success of the high street. “I would urge high streets up and down the country to enter this year’s Great British High Street competition, which is now in its fourth year. The competition highlights good practice through leadership, events, training, partnerships and an understanding of what makes the high street unique. This will help high streets across the country to attract shoppers and pub goers.”
11 July 2018
The British Beer and Pub Association (BBPA) is predicting that home fans will buy TEN MILLION extra pints at the pub during the semi-final World Cup match against Croatia, as they cheer on the England team. The extra number of pints bought during the knockout stage match could provide a boost to the economy of up to £30 million. The Great British pub will be one of the main benefactors of a surge in demand for beer as fans cheer on the England team against Croatia at their local, which will take place on Wednesday 11thJuly at 7pm. The taxman will be cheering the loudest when England play Croatia. Counting receipts from beer sales, the Chancellor could get an additional windfall as high as £4.5 million from beer drinkers and pub-goers watching the match. The BBPA had predicted that during the group stages of the World Cup, England fans would purchase up to 16 million extra pints while watching England in their games against Tunisia, Panama and Belgium. It also predicted that England fans would purchase up to 6 million extra pints during the last 16 match against Colombia, and 8 million extra pints during the quarter-final game against Sweden. BBPA Chief Executive Brigid Simmonds comments: “When it comes to watching the World Cup, only being at the game itself can compare with being in the pub. With the England team doing us proud and progressing through the knockout stages of the tournament, fans will continue to pack out their local to cheer on the boys. It’s fantastic news for both English football and the Great British pub!”
04 July 2018
The British Beer and Pub Association (BBPA) has today responded to proposals from PPL for fee rises to its Specially Featured Entertainment (SFE) Tariff, which covers the playing of music at discos in pubs and nightclubs. Commenting on the fee proposals, BBPA Chief Executive Brigid Simmonds said: “We are extremely disappointed that PPL are proposing such eye-watering increases to their Specially Featured Entertainment (SFE) tariff which covers pubs, clubs and other venues that put on discos and DJ events for customers. A 450% increase in the tariff (from 3.8p per person per hour, to 22p per person per hour) on top of proposed structural changes that could more than double this figure, will simply not be viable for many licensees at a time when pubs are already facing major cost pressures in terms of increasing taxes and other regulatory costs. Whilst we welcome discussions on ensuring fairness and clarity in how the tariff is calculated and if improvements can be made to deliver this, we believe that these discussions must take place first and any impact considered further before there are proposals for cost increases. “As PPL note in the consultation document, the SFE tariff is already increased annually by the Retail Price Index (RPI). Of course, RPI itself is now a discredited measure of inflation, but the use of this measure will have seen the SFE tariff increase by over 50% since 2003. This is compared to a 38% increase in the Consumer Price Index, the official measure of inflation, during this period. We are grateful for the dialogue and engagement we have had with PPL on this issue over the last year, but see no justification for further increases in the tariff at this time and we will be responding accordingly.”