Small steps to help UK’s hospitality industry A small number of policies introduced to support the hospitality industry during COVID are set to be extended to offset the rising cost of living crisis, and with a new prime minister set for the autumn, the sector is asking for more support from the new government. The delay to the alcohol tax reform announced July 20th, has had a mixed response from the industry. The WSTA has welcomed it as a “sensible pause” to allow time to ensure the plans are “fairer” and “simpler” for wines and spirits. However the trade body UK Hospitality has expressed disappointment to the delay in the reform which was set to help pubs deal with soaring costs by positively impacting the tax on draught beer and cider. Pavement licenses first introduced in 2021 to stimulate the hospitality industry are set to be made permanent as part of the Levelling up and Regeneration Bill, with the objective of revitialising high streets and creating vibrant places for consumers through al fresco dining. Already deemed a success, it will be extended until September 2023 then to become law. In addition, Kwasi Kwarteng has confirmed the extension of the Recovery Loan Scheme (RLS) in order to support small businesses as they struggle with rising costs. However, the RLS has been criticized as being “less attractive” to banks than previous schemes given the cost of living crisis, which will impact the level of risk they are willing to take with the hospitality industry.
Contact PROOF to find out how the different channels are faring in the face of rising costs, staff shortages and low consumer confidence. Source: The Morning Advertiser, The Spirits Business, Gov.uk, UK Hospitality, WSTA |
UK tequila sales soar & rum overtakes whisky New data has revealed that sales of tequila in the UK off trade have almost doubled in value in the last two years. The Wine and Spirit Trade Association’s (WSTA) latest market report shows a 94% jump in tequila’s value and an 83% boost in its volume of sales in UK shops and supermarkets against pre-Covid levels. In comparison, the category has grown by 11% in value and 8% in volume in the on-trade during the same period. The WSTA attributed tequila’s rapid growth to greater exploration of the category by consumers, a trend predicted earlier this year by PROOF in the Summer Serves report which highlighted the expanding use of the spirit from shot consumption to greater inclusion in cocktails and being enjoyed neat as a sipping drink. The spirit’s versatility, further brand proliferation and willingness by consumers to pay more for a premium product have been echoed elsewhere in the market by the rise of rum, now overtaking whisky in UK spirits market share. Data from CGA show rum sales from July 2021 to July 2022 amounting to £1bn, now accounting for 13% of the overall spirits category in the UK. Spiced and flavoured styles remain the most popular, with 60% of category sales. However, sales of all variants, including white, golden and dark rums, increased – particularly in premium lines which now account for a third of the total rum market. Rum’s rise can also be attributed to being increasingly enjoyed by a younger demographic; PROOF Insight’s consumer research revealed that 36% of rum drinkers are aged 18-34. Source: The Spirits Business, WSTA, CGA, PROOF Insight POURtraits research |
Regulations for no and low alcohol beer could be eased Restrictions on the labelling of no and low-alcohol beers could soon be eased, bringing the UK in line with many other countries. The current UK restrictions prevent any beer with alcohol content above 0.05% from being labelled as “alcohol-free”, whilst “low-alcohol” can only be applied to beers below 1.2% ABV. The Campaign for Real Ale’s Chief Executive claims that the existing regulations undermine the government’s attempts to reduce alcohol consumption and improve public health. Under the new laws, the limit for “alcohol-free” would be raised to between 0.5%-1.0% ABV depending on the final policy, whereas “low-alcohol” would cover all beers up to 3% ABV. The changes aim to allow brewers to produce more enticing and marketable lower-alcohol alternatives in order to encourage consumers to make the switch. The changes provide brewers with more leeway when producing no and low alcohol beers, as well as improving the labelling for some existing beers. One such brand is Small Beer Co., who are currently forced to describe their beers as “lower-alcohol” as they sit between 1% and 2.8% ABV. Under the new regulations, the brand would be able to use “low-alcohol”, further helping consumers to understand the product and potentially allowing the beer into no and low alcohol sections in supermarkets. Source: The Times |
Investments, Mergers & Acquisitions
Sources: Big Hospitality, Propel, The Morning Advertiser, The Drinks Business, Just-Drinks |
Drinks Product Launches & Campaigns:
Sources: The Morning Advertiser, The Spirits Business, The Drinks Business |