Britain’s on-trade drinks sales edged back into growth on pre-Covid levels last week, CGA’s Drinks Recovery Tracker shows.
It indicates that average sales by value in managed pubs, bars, and restaurants in the seven days to Saturday (23rd April) were 1% up on the same week in 2019. This follows four successive weeks of sales hovering two or three percentage points off comparatives.
However, with year-on-year inflation currently running at around 7%, and margins under severe pressure, real-terms growth in sales and profits remains hard to achieve for many drink-led operators.
CGA’s Tracker shows drinks sales struggled over the Easter period, dropping behind 2019 levels by 9% on Easter Sunday and 6% on Easter Monday. This was due, in part, to much cooler weather than three years ago. But trading picked up as the week went on, finishing 9% up on both Tuesday and Wednesday, and 17% up on Thursday.
Saturday ran 12% ahead, with pub and bar footfall boosted in the evening by viewers of the boxing match between Tyson Fury and Dillian Whyte.
Jonathan Jones, CGA’s managing director, UK and Ireland, said: “Soaring costs mean the recovery from Covid-19 remains under severe pressure, but this modest growth raises hopes of turning a corner.
“It is particularly pleasing to see such strong midweek trading, and it suggests after-work drinking occasions may be returning as people head back to offices. May is always a crucial month for the on premise, so we will wait to see if the upward trajectory can continue.”
On a category basis, sales of spirits were up by 8% on the same week in 2019, while beer sales (up 1%) were in growth for only the third time this year. Soft drinks were 2% up, but cider (down 8%) and wine (down 6%) were in the red.
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