Beer sales dive to hit brewing industry again

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Sales of beer in supermarkets and off-licences were down by 12% in the third quarter, while sales in pubs dropped by 7.8%.

The latest figures are in stark contrast to those for the second quarter of 2010, in which sales rose by 2.9% — their first quarterly increase for four years.

At the time the British Beer and Pub Association said: "We can now hope the industry has turned a corner."

But the latest results show that the industry is still in decline and second quarter results were a blip, caused in part by the World Cup, which ran from June 11 to July 11.

"As has occurred after every World Cup, the beer market hit a bump in the road, which was not helped by a wet summer," said Brigid Simmonds, chief executive of the BBPA.

"But these exceptional factors are underlaid by lingering economic and consumer uncertainty. Concern about the impact of public spending cuts on jobs and incomes and the forthcoming VAT and beer tax rises are feeding that unease."

She called on the Government to give the beer and pub industry "a break" by reducing the tax on beer and reducing regulation on the industry.