Beer Sales Down 39%
13 Apr 2011
The old naval tradition of the captain last to leave a sinking ship is being reversed at Punch Taverns as Dyson the chief executive is the first off to the lifeboat - leaving the tenants and bondholders to fend for themselves if the demerger happens says GMB.
An analysis by GMB, the union for tied pub tenants, of official data shows that total alcohol volumes released for UK consumption in the year to January 2011 are 1% down on the levels for the year to January 2010 and down 0.2% on the figure for the year to December 2010. This analysis comes as Punch Taverns, one of the biggest pubco operators, announced losses of £350.7m for the first half of the financial year and its plans to demerge the company and dispose of unprofitable pubs.
The latest official HM Revenue and Customs (HMRC) figures for January 2011 show that the volume of wine released for UK consumption in the year to January 2011 was down by 0.7% on the volume for the year to December 2010 and down 0.4% on the volume for the year to January 2010.
In the year to January 2011 the volume of cider released for UK consumption was up by 0.7% on the volume for the year to December 2010 and up by 0.1% for the year to January 2010.
In the year to January 2011 the volume of spirits released for UK consumption was down by 2% on the volume for the year to December 2010 and up 2.2% on the volume for the year to January 2010.
In the year to January 2011 the volume of beer released for UK consumption was down by 0.1% on the volume for the year to December 2010 and was 2% down on the volume for the year to January 2010.
In the year to January 2011 the volume of beer released for UK consumption in the “on trade” was down by 0.1% on the volume for the year to December 2010 and was 4.8% down on the figure for the year to January 2010. Sales of beer in the “on trade” are down 38.8% on the peak levels in 2002.
In the year to January 2011 the volume of beer released for UK consumption in the “off trade” was down by 0.1% on the volume for the year to December 2010 and was 1.3% up on the volume for the year to January 2010.
These figures are from a GMB analysis of the latest official figures for alcohol released for UK consumption up to December 2010, the latest figure available which were released today by HMRC.
This analysis of alcohol volumes released for sale by GMB, the union for tied pub tenants, shows an unsteady and uneven recovery underway in the seasonally adjusted monthly volumes of some type of alcoholic drinks released for consumption in the UK while volumes are still well below pre-recession levels for all types of alcoholic drinks except cider.
The indices for the seasonally adjusted monthly volumes of wine, beer, cider and spirits released for UK consumption from August 2007 to January 2011 are set out in the Table below with the figures indexed from the volumes in June 2002.
In value terms alcohol consumption is still well down on the peak level of £43.4 billion sold in the UK in 2007. Beer had a market share of 41.6% of all sales in 2009 and volumes are still declining. Spirits had a market share of 20.2 % of sales in 2009. Volumes of wines and ciders, with a market share of 38.2% of sales in 2009, are growing. In 2009 total alcohol sales in the UK had fallen in value by 4.6% to £41.4 billion
Paul Maloney GMB National Officer for tied tenants said “Beer sales in the “on trade” continue to fall month by month. They have fallen off a cliff – down 38.9% from peak levels - as pubs are priced out of the market and close as a result of rents being too high. Ian Dyson chief Executive of Punch plans to be the Chief Executive of Spirit. The old naval tradition of the captain being last to leave a sinking ship is being reversed at Punch Taverns one of the largest pub operators. Dyson the chief Executive of Punch is the first off to captain the lifeboat - leaving the tenants and bondholders to fend for themselves if the planned demerger actually happens.
GMB has called for bondholders, shareholders and tenants as stakeholders in Punch to work together and for the debts to be converted to equity. We understand that a majority of the bondholders are now in favour of this outcome. So why is Dyson to so keen the desert the sinking ship and head for the lifeboat?
The recent rise in VAT to 20% means that the differential in the price of beer in supermarkets and pubs is wider than ever. More pubs will close. The private equity inspired property companies like Punch that own large chunks of the pub estate are charging these sky high rents to pay interest to offshore bondholders. They are doing absolutely nothing to end this loss of market share.
The regulatory authorities have done nothing to save tied tenants from this market abuse by these property companies that own pubs. The Government has done nothing either. Pub tenants are bitter at this inaction. Government talk about binge drinking completely misses the point that supermarkets are the source of much of the drink as beer sales in pubs are 38.8 % down on the peak year of 2002.”