The average price of a pint of beer rises to over £4 in the UK, premium beers still outperform
The average price of a draught pint of beer reached over £4 in June 2022, an increase of 13p since January 2022 according to the latest ONS data. In London, premium pints are reportedly even hitting the £8 mark. Attributed to the rising costs from suppliers, rising staff wages and electricity bills, publicans are increasingly finding themselves with no other option but to increase prices. Come October, when the energy bills are set to rise again, many landlords have expressed concern they will be forced to increase prices once more to keep up.
Publicans are reporting starting to see regulars cutting down on their visits and are worried about the impact of further increases. The situation is not helped by the increasing price difference between the on- and off-trade; one landlady in Cumbria reported increasing her most popular beer brand to £5.80 a pint, while a major supermarket promoted a similar brand to what is the equivalent of £2.25 per pint.
According to a YouGov drinks industry survey commissioned by CAMRA, 52% of respondents find the cost of a pint is now unaffordable, increasing from 42% in 2019. As a result, CAMRA is calling for support from the government by asking them for a lower rate of tax on draught beer, a price cap on energy bills for hospitality businesses and to reform the pubs code for England and Wales to give tenants the right to buy beer on the open market at a competitive price.
At a drinks brand level, premium beers are still gaining share over lower priced brands; consumers appear to be cutting back on volume consumed (drinking out on fewer occasions) and maintaining spend when out. Contact PROOF Insight for more information about the rising price of a pint of beer.
Source: The Morning Advertiser, ONS, YouGov, The Times, Evening Standard.
Mixed fortunes for the on-trade during the heatwave
New data shows alcoholic drinks volumes in managed venues were down 16.8% vs 2019 in the week ending 23rd July, which saw record-breaking temperatures in the UK. This was a slowdown compared to the previous week ending 16th July (-9.7%) and the following week ending 30th July (-12.2%). Whilst we may have expected a swing to soft drinks, alcohol still outperformed softs in the on-trade.
The Monday heatwave (18th July) drew more people out than usual – volumes in England and Wales were up 4.2% vs 2019, with Cider up 48.1% and spirits up 17.5%. Wine was the most impacted with volumes down 40%. On Tuesday 19th – when temperatures reached 40C – more consumers opted to stay at home, with total volumes falling back 17.4% in England and Wales. Although less impacted by the heatwave, sales in Scotland were also muted in managed outlets, down 17.6% in the last two weeks of July.
Looking ahead to the rest of Summer, venues with outdoor space are expected to continue outperforming as consumers make the most of the warm weather. Cider, Spirits and Premium Beer remain key listings within drinks ranges, whilst outlets can focus on driving Wine sales on cooler evenings through refreshing Spritz serves and with food.
Source: CGA by NielsenIQ Drinks Recovery Tracker
Women’s sport is a missed opportunity for the on-trade
Being hailed as the turning point in women’s football, England’s victory against Germany on Sunday was watched by 17.4m people – an all-time record for women’s football and the leading TV event of 2022. In addition, an aggregated number of over half a million attended the tournament with 87,192 attending the final at Wembley – a record for both men and women’s international football in Europe. And most importantly, the lionesses brought football home, winning the country’s first major trophy in 56 years.
PROOF’s market research shows that whilst 60% of alcohol drinkers watched the final, it was a game of two halves as the on-trade missed an open goal with only 6% watching it in a pub or bar, rising to 9% of 18-44s, and 54% watching it in their home. With 46% of under 45s stating that they enjoy the pub atmosphere of a football game, there is an opportunity for the on-trade to make the most of women’s tournaments. By promoting showing the games and providing special offers, the on trade can attract some of the 44%, according to Ipsos, that are now interested in watching women’s football following the Euros final.
With the men’s world cup coming in November 2022 and the women’s world cup planned for July 2023, the on trade has the opportunity to score with football-loving consumers, as well as those who enjoy the excitement of sport by demonstrating the unique atmosphere that only a pub can provide.
Sources: PROOF POURtraits, BBC, UEFA, Ipsos
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