Industry Analysis & Industry Trends
Conditions in the British Pubs and Bars industry remain challenging. Legislative, social and economic trends have all negatively affected industry revenue and profit performance. Despite a stronger consumer backdrop in recent years, increases in beer duty, declining alcohol consumption and competition from cheap supermarket alcohol have weighed on many operators. Furthermore, industry players have been pinched by the rising prices of beverages and food, rising rents and increased business rates. Tenanted publicans that had to purchase beer from a particular operator were hit especially hard when debt-laden pub companies increased rent and beer prices in order to pay off their debts... purchase to read more
Industry Report - Industry Products Chapter
Selling beer is the industry's most important revenue stream and is expected to account for 33.2% of revenue in 2016-17. Historically, this segment has been much larger, but it has steadily lost share to food and competing beverages such as wine, spirits and cider. Overall per capita beer consumption has decreased over the past decade, though it still remains Britain's favourite alcoholic beverage. Expenditure on beer has not fallen as much as total consumption since consumers have generally shifted up the value spectrum, drinking more craft beers and premium lagers. High beer duty has also played a role in this. During the past five years, the decision by many operators to focus on food has also led to a relative decline in beer sales.
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