It has been widely reported today that UK beer sales were 8.2% lower in the first quarter of 2009 than in the comparable period last year. Perhaps surprisingly, and certainly in defiance of the conventional wisdom, sales in the off-trade fell almost twice as steeply as those in pubs, suggesting that at-home drinking is much more of a discretionary purchase than going to the pub, and something people cut back on when times are hard.
The fact that total revenues from beer duty fell despite higher duty rates calls into question the government’s policy of above-inflation increases. We are now clearly past the point of diminishing returns. And, given that overall consumption has fallen so sharply, you might imagine that they might let up on their campaign of anti-drink hysteria, but don’t hold your breath.