On-trade loses out on £5.7bn from beer sales alone in 2021: The on-trade lost £5.7bn of revenue from beer sales alone in 2021 – equivalent to 1.4 billion pints, according to new data from the British Beer & Pub Association (BBPA). Despite an improvement, pub beer sales were still down 38% last year against pre-pandemic levels. Pubs accounted for 1.1 billion of the lost pints, or £4.5bn in revenue. However, the figures are an improvement from 2020, where pub beer sales were down 55% compared with 2019. BBPA analysis of HM Revenue & Customs tax receipts confirms a significant shift in consumer consumption patterns. Between March 2020 and October 2021, beer receipts dropped 11% while receipts for wine and spirits rose 8% and 13%. In response to the figures, the BBPA is calling for a reduction to beer duty closer to the lower rate proposed for cider; an extension to the proposed relief for draught beer sold in pubs to include smaller kegs below 40 litres; an increase in the threshold to define lower-strength beer from 3.4% ABV to 3.5% ABV and additional support, including reform to business rates and an extension to the reduced 12.5% rate of VAT for hospitality. BBPA chief executive, Emma McClarkin, said: “Our analysis showing falling beer consumption supports the Treasury’s stated objective to incentivise lower-strength products and differentiate beer from stronger wine and spirts as part of planned reforms to the alcohol duty system. We must again ask ministers to go further and support our recovery by continuing to reduce the punitive tax burden on our sector to ensure the sustainability of brewing and pubs.” extracted from Propel News


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