top of page

The latest news, trends, analysis, interviews and podcasts from the global food and beverage industry

FoodBev Media Logo
Access more as a FoodBev subscriber

Sign up to FoodBev and unlock more insights from the international food and beverage industry. Subscribers have access to webinars, newsletters, publications and more...

Domino September - Website Banner - GS1 - 300x250.gif
Camra calls for Government action to save pubs
FoodBev Media

FoodBev Media

15 September 2008

Camra calls for Government action to save pubs

*At the launch of the Good Beer Guide 2009, CAMRA (Campaign for Real Ale) is calling on the Government to introduce measures to prevent supermarkets selling alcohol as a loss leader. *

In response to the announcement that 36 pubs are closing every week, with a gloomy outlook for many more British pubs, the UK consumer group is urging the Government to introduce minimum pricing to reduce the gap between supermarket and pub prices.

“Cheap beer in supermarkets – often sold at less than the price of bottled water – is killing the British pub,” said CAMRA Good Beer Guide 2009 Editor Roger Protz as he launched the 2009 edition.

“Over 150 pubs a month are closing,” Protz said. “And the main reason is simple: people are abandoning their locals because they can buy cheap supermarket beer at a fraction of the price charged by pubs.”

CAMRA claims that well-run community pubs provide a perfect environment for adults to enjoy alcohol responsibly, but as small businesses, they are unable to absorb tax and cost increases and cannot demand the wholesale discounts enjoyed by supermarkets. Pubs are no longer able to compete on a level playing field.

Industry statistics show that off-trade beer prices have fallen by 1% in the last year, while pub prices have increased by around 4.4%. Since 2002 Off-trade beer prices have fallen by 7% while pub prices have increased by 24%.

As a result of the 10% beer tax increase in this year's Budget, prices in pubs have increased by 4.4% in the last year and the average price of a pint of lager in a pub is now £2.82. In contrast, prices in the off trade have fallen by a further 1% as a result of price promotions.

CAMRA believes Government action is required to help pubs as they are the best place to enjoy alcohol responsibly in a regulated and socially controlled environment.

In a recent CAMRA pricing survey, research found drastically low figures in the off-trade with mainstream global lager bands on sale for as little as 57 pence a pint.

Examples of price deals found in supermarkets in September 2008: * Sainsbury's: Foster's lager – 3 cases of 440ml cans for £20. That's the equivalent of 57.4 pence per pint. * Asda: John Smith's Smooth Bitter – 3 cases of 440ml cans for £20. That's also the equivalent of 57.4 pence per pint. * Morrison's: 24 cans of 440ml Stella Artois lager for £15.47. That's the equivalent of 77.9 pence per pint. * Lidl: 8 cans of 440ml Carlsberg lager for £4.49. That's the equivalent of 56.9 pence per pint. Mr Protz commented: “When a pub closes the community’s heart is ripped out and dies. It's a particular problem in rural areas, where the village pub is the heart of the community. People go to pubs for friendship, conversation, to enjoy an affordable meal, or just quietly read a newspaper. ”

“And pubs are regulated licensed premises. Publicans who permit bad behaviour such as heavy drinking will lose their licences.

“Supermarkets face no such restraints. They have no idea what happens to cheap alcohol once it leaves their stores. In too many cases, it's passed on to under-age drinkers. It's the supermarkets, not pubs, that encourage binge drinking, with their massively discounted sales of alcohol. ”

Roger Protz describes the relationship between big brewers and supermarkets as, “the economics of the mad house. Coors, the American giant that now owns the former Bass breweries in Britain, has seen its profits halve in recent years – mainly as a result of the deep discounts demanded by the retailers.

“One solution is for England and Wales to follow the example of the Scottish government and consider a minimum pricing policy for alcohol sold in the off-trade. Urgent action is needed to help save that great British institution – your friendly, neighbourhood local. ”

Related posts
bottom of page