Trade association says changes, combined with Alcohol Duty Review proposals, are a positive move forwards The British Beer & Pub Association (BBPA), the leading trade association representing brewers and pubs, has today welcomed the Government’s proposals to improve the current structure of Small Brewer Relief (SBR) to more closely align with economies of scale and remove barriers to growth. The trade association hopes that the measures announced today, combined with the recent proposals set out in the wider Alcohol Duty Review, will build on the successes of SBR, whilst addressing the long standing distortions caused by the current structure. A British Beer & Pub Association spokesperson said: “We welcome these changes to Small Brewer Relief, a scheme which provides a major boost to the UK’s small brewers. The proposals seek to more closely align with economies of scale and will address barriers to growth. “Combined with the recent duty freeze and proposals set out in the new Alcohol Duty Review, we hope this will now stimulate business growth and investment in Britain’s brewers of all sizes at a crucial time in their recovery post-covid.”
The British Beer & Pub Association has today responded to the Government’s proposed changes to the Pubs Code. The trade association has particularly welcomed the Government’s decision to streamline the Market Rent Only (MRO) process, which both tenants and pub-owning companies called for. It has also reiterated the strength of the leased & tenanted model and in particular the partnership between pub-owning companies and tenants. Through the pandemic, pub-owning companies provided £285 million in reduced or cancelled rent to tenants. In the same period, they also provided additional support such as refunds on spoilt beer, COVID signage and PPE worth on average £27,000 to a pub. A British Beer & Pub Association spokesperson, said: “We support these proposed changes to the Pubs Code, which recognise the value of the leased and tenanted model and the strong relationship between pub owning companies and their tenants. “In particular, the streamlining of the Market Rent Only process is welcome for tenants and pub-owning businesses alike and will facilitate negotiation and agreement. “During the pandemic leased & tenanted pubs received £285 million in reduced or cancelled rent and further additional support worth on average £27,000 per pub from pub-owning businesses. “The partnership between tenant and pub-owning businesses provides balance, security and investment – and has secured community pubs for generations to come. Looking ahead to the launch of the next statutory review in 2022 we will again reiterate this message to ensure the Code continues to support the relationship between tenants and pub-owning companies.”
Total beer sales fell by 14.2% in 2020 due to pandemic and lockdowns, new BBPA data reveals The British Beer & Pub Association (BBPA), the leading trade association representing brewers and pubs, has today revealed that Brits drank more wine and spirits – but less beer – during the 2020 lockdowns. The finding comes from new data published by the BBPA in its latest 2021 Statistical Handbook – a ‘must read’ for anyone with an interest in the UK drinks sector. During the lockdowns of 2020, the percentage share of alcohol consumed through wine in the UK increased by 2 percentage points. Over the same period, the percentage share of alcohol consumed through beer decreased by 4 percentage points – with total beer sales in 2020 falling by 14.2%. It means that during 2020 and the height of the pandemic and lockdowns, Brits consumed 33% of their alcohol through beer and another 33% through wine, compared to 37% for just beer and 31% for just wine in 2019. Over the same period, Brits consumed 26% of their alcohol from spirits, up 2 percentage points from 2019. According to the BBPA, the key reason behind the shift in drinking habits during the pandemic was due to the forced closure of pubs, which led to Brits consuming wine and spirits bought from supermarkets and shops instead of draught beer bought over the pub bar. Typically, 7 in 10 alcoholic drinks served in a pub are beer. The trade association says the data shows how crucial pubs are to encouraging moderate consumption of alcohol through draught beer, which is on average 4.2% ABV. It also said the numbers demonstrated the damage of lockdowns to brewers, who lost a key route to market when pubs were forced to close during the lockdowns of 2020. At the recent Budget, Chancellor Rishi Sunak unveiled changes to modernise the alcohol duty regime in the UK to better incentivise the consumption of lower-strength drinks such as lower alcohol beer. This, the BBPA hopes, will aid British beer in growing market share once more, along with the reopening of pubs in 2021 where consumers are more likely to choose beer on draught over wine or spirits. Emma McClarkin, Chief Executive of the British Beer & Pub Association, said: “Lockdowns and the shutting of pubs in 2020 meant Brits drank more wine and spirits, but less beer, than in previous years. “With the pubs closed, its clear people turned to wine and spirits from shops and supermarkets rather than beer. Because of this, overall beer sales in 2020 fell by 14.2%. In short, sales in supermarkets didn’t make up for sales lost from closed pubs. “It goes to show that when people visit the pub they primarily drink beer, which on average is 4.2% ABV, the lowest strength alcohol category and so ideal for moderate consumption. It is great to see the Chancellor recognise this and promote lower strength alcohol drinks with his changes to the UK alcohol duty regime announced in the recent Budget. “With pubs open and trading again in 2021, we hope customers will revert to choosing a beer at their local – a safe and managed space at the heart of communities throughout the UK.” All statistics used in this press release are in the latest BBPA Statistical Handbook 2021 – available here.