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Drinks sales struggle to grow ahead of Christmas season

According to CGA, average sales in managed venues in the week to 19 October just about surpassed the same week in 2023, with fractional total growth of 0.1%

Drinks sales continue to struggle for year-on-year growth ahead of the Christmas season, CGA by NIQ’s Daily Drinks Tracker shows.

According to the tracker, average sales in managed venues in the week to 19 October just about surpassed the same week in 2023, with fractional total growth of 0.1%. However, they soon slipped back, finishing 5% down in the week to 26 October, meaning that drinks sales have now been down in four of the last five weeks.  

Trading has suffered by comparison to last October, when England’s progress in the Rugby World Cup brought millions of consumers out to watch games in pubs and bars. It has also fluctuated in line with the weather, with growth of between 4% and 9% from 16 to 18 October, when much of Britain enjoyed temperatures that were well above the levels of October 2023. 

But with gloomy weather then moving in, sales were down year-on-year by between 5% and 7% on every day from 21 to 26 October — though comparisons are slightly distorted by an earlier half-term holiday for schools last year, which helped footfall across the week. 

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The Daily Drinks Tracker shows some categories have fared better than others in recent weeks, with Long Alcoholic Drinks (LAD) doing best. Beer (up 2% and 0.1% in the weeks to 19 and 26 October respectively) and cider (up 0.2% and down 3%) had a reasonable fortnight, while soft drinks (down 0.3% and down 0.3%) and wine (up 3% and down 6%) were largely behind year-on-year.  

Worst hit of all in the extended period of soft trading has been the spirits category, with sales down by 8% in the week to 19 October and by 15% in the week to 26 October. It prolongs a long-term downward trend as some consumers migrate from spirits to longer serves, though some segments of the category have been more resilient.  

Rachel Weller, CGA by NIQ’s commercial leader UK and Ireland, said: “The decent weather and Rugby World Cup of October 2023 have made for some tough comparisons over the last month.

“Despite some positive economic indicators lately, trading conditions are clearly still difficult in many categories and channels, though a few bright spots raise hopes that consumers’ spending confidence could start to pick up. As the two-month run-up to Christmas gets underway, there is all to play for in the On Premise.”

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