News

September 21, 2010

Bars and retailers must adapt to slump in alcohol consumption

Bars, pubs and shops will need to diversify to survive, the British Beer and Pub Association (BBPA) has warned – after its research found annual alcohol consumption last year fell by the greatest amount in 60 years.

The BBPA’s Statistical Handbook 2010 showed there was a six per cent fall in overall alcohol consumption between January and December 2009 – taking into account the amount of alcohol bought per head at pubs, bars, restaurants and shops.

BBPA spokesman, Mark Hastings, said that the volume of alcohol being sold would not damage businesses if they reviewed their pricing strategy. “Customers are looking for value for money, so those pubs that are more resilient are those that are putting the pricing up on some products and down on others,” he said.

“Businesses that are struggling as a result of the decline in drinking should diversify, perhaps by focusing more on their food offer,” added Hastings.

He said that the drop in alcohol consumption was part of a wider trend of decreasing consumer expenditure due to the recession. “We are seeing declining consumer spending, on food, drink and entertainment, and the fall in alcohol consumption is a part of that,” said Hastings.

InTouch Marketing consultancy managing director, Andrew Gerrard, said that as alcohol consumption falls, businesses that sell it will need to diversify.

“Business owners should engage with customers and find out what their target market wants,” he said. “Off-licences may struggle to survive as alcohol sales decrease, but a convenience store where alcohol is only part of its portfolio should think about the other reasons people visit their store and focus on improving those.”