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Supermarkets will take over from pubs and other licensed venues as the biggest sellers of beer within the year as record numbers of pubs close across the country.
According to industry leaders, Britain’s pub industry is in its worst crisis for 70 years as the pressures of the economic downturn, increased beer duty and aggressive marketing of alcohol by supermarkets drive away customers in rapidly growing numbers.
The Timeshas learnt that a powerful lobby of policing, health and licensing industry leaders is to urge the Government to implement pricing controls on the supermarkets to prevent them from using alcohol as a loss leader.
The Government, already under pressure to reduce binge drinking, has commissioned research into the relationship between heavy discounting and irresponsible consumption.
More than two dozen pubs are said to be closing every week and industry analysts predict that that rate could almost double within a year. Since 2000, more than 3,600 pubs have closed in Britain, with many landlords blaming the smoking ban, which came into effect in July 2007, for the reduction in business. Last year, almost seven times as many pubs closed compared with the previous year.
At the same time supermarkets are encroaching into the market and attracting customers with heavy cost cutting. Over the August Bank Holiday weekend, Sainsbury’s was offering 60 284ml bottles of Stella Artois lager for £20, equivalent to 33p per bottle.
In the last quarter, while sales of beer in pubs and restaurants fell by 8.3 per cent, they rose by 5.3 per cent in the off-trade area, which consists mainly of supermarkets.
Leading breweries and the British Beer and Pub Association (BBPA) told The Times that if current trends continued, the supermarkets were likely to overtake pub sales within the next year. Neil Williams, a spokesman for the BBPA, said that there had been a “consistent and relentless” switch from pubs to retail outlets.
He said that the switch to drinking at home, combined with other issues including the smoking ban, economic problems and a sharp increase in beer duty, had left pubs in “one of the most difficult periods ever”.
Nigel Pollard, a spokesman for Scottish & Newcastle, Britain’s biggest brewery, said that a “tipping point”, where supermarkets overtook pubs, was likely to be reached within the year.
He cautioned against imposing price controls on supermarkets, but said that pubs needed to become more attractive to customers to avoid losing a “very long-standing institution”.
“This also impacts sports and social clubs. It’s very much the fabric of the high street and the way we socialise, and we lose that at our peril.”
John Grogan, a Labour MP and chairman of the All Party Parliamentary Beer Group, told The Times that the Government was being subjected to intense lobbying over the price differential.
Although a floor price for alcohol is likely to be introduced in Scotland, further increasing the pressure on the Government, Mr Grogan said that many ministers were wary about the imposition on big supermarket businesses.
Publicans support price controls and have also called for a freeze on beer duty, which they say is one of the main causes of the exodus of customers from their pubs.
Leading health professionals and police officers, concerned about the social impacts of binge drinking, have also added their voice to calls for greater regulation.
Ian Gilmour, the President of the Royal College of Physicians and chairman of the Alcohol Health Alliance, said that supermarket cost-cutting was having the “biggest single impact on alcohol misuse”.
He added: “We know that the kids who are out there getting drunk and getting involved in crime, or ending up in accident and emergency, are unlikely to be drinking in pubs. Chances are they have been tanked up on cut-price alcohol.”
Ken Jones, president of the Association of Chief Police Officers, called on the Government to investigate better regulation of the industry because of its “grossly irresponsible” approach to the pricing and marketing of alcohol. “When alcoholic drinks are being sold at a price below water, we are in a really bad place,” he said.
He added that “louts’ runs” existed around many supermarkets because young people could purchase cheap alcohol. “In that zone you find disorder, litter and threatening behaviour that is stimulated by cheap alcohol,” he said.
However, Richard Dodd, a spokesman for the British Retail Consortium, said that it was unreasonable for customers to have to pay more in supermarkets because of a “misguided belief” that it would help pubs. “It’s ridiculous to suggest that supermarkets are selling any significant proportion of alcohol at a loss. No business could survive, and certainly not thrive, if they were doing that,” he said.
Mr Pollard added that pricing control was a dangerous move because there were many other factors driving customers away from pubs, including the rise of home entertainment and an unwillingness to travel after dark. “We just have to try and make pubs more attractive,” he said.
Jonathan Mail, head of policy and public affairs for the Campaign for Real Ale, said that price controls would soften the impact of a worsening economy on pubs.
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its unbelievable how cheap is booze in supermarkets. I think,supermarkets need to be also under regulation, as they are so greedy that is not acceptable any more
stefan kollar, Preston, england
Soon the public house will be a thing of the past, the same as greengrocers,bakery shops butchers etc..
All thanks to supermarkets. How many more business's will be boarded up so that the giants can make more money?
One day you might just want a pint in your'e local, but will it still be there?
Tony, Walsall,
It's great that there is a smoking ban. I now enjoy the pub, knowing that selfish people are not poisoning my body.
But I only have 2 pints because of drink/driving laws. I think that more pro-active policing is also a major cause of the pub decline. But it is for good reason.
john blair, london,
many on here are saying that the smoking ban is responsible for pubs going under, if that's the case, then good. many of these places are spit and sawdust dumps that deserve to be down the pan. as for "tug wilson" tories are the last thing we need for the country, we are just getting over Thatcher!
tony, Lancs, UK
This may sound odd but I do not want to pay more for any beer I drink at home to "soften the impact of a worsening economy on pubs". I don't use the pubs in the town where I live because none of them have an offer that apepals to me.
Jws, Sittingbourne, Kent
We have had cheap supermarket booze for years,fact,when are newspapers and web sites going to start telling the TRUTH,the Smoking Ban is the real reason pubs and clubs are going out of business,this is why the Tories have come up with their Freedom Charter,sooner the better.
tug wilson, nottingham, england
if most of the pubs and clubs close, just think what effect this will have on the birth rate
anon, nancy,
I will no longer pay 3 pounds a pint in pub. It's a complete rip-off.
ray, Somerset,
" with many landlords blaming the smoking ban, which came into effect in July 2007, for the reduction in business. Last year, almost seven times as many pubs closed compared with the previous year. "
There you have it, direct from the coal face.
Now stop the fiction.
Frank H, London,
.......and the British will follow this trend like sheep and eventually help to kill the great institution of the pub. It will be down to the real ale societies, of which my cousin belongs, to save the day !!!!!
ian payne, WALSALL,
Muslims don't drink.
Rafael, Granada, España
I live in Spain (Benalmadena, Costa Del Sol) a pint of beer at a bar is only 2.00
They (bars) can choose if they want it to be a smoking bar or not, and have by law to put a sign up on the entrance door stating this. Then, non smokers can choose whether or not to go into a "smoking" bar.
Andrew Greenwood, Benalmadena Costa, spain
People from the pub trade claim that the smoking ban combined with competition from supermarkets on price, make it tough for pubs to stay open. Add to this the appeal that bars have over the pubs these days, and you are basically fighting a losing battle! Shame because pubs are a British tradition!
Nathalie Hachet, Manchester, UK
Well atleast you don't have to worry about being stabbed on the way home.
Socially going out has become vile and a rip off, plus smokers
are now treated like lepers.
But closet drinking creates more chronic alcoholics so NHS, social services etc, will need more money.
Steve, Manchester,
I am not surprised when pubs charge you over £3.50 for a pint and even more for a bottle!
Nothing to do with the smoking ban. Make prices more resonable then people will go back in pubs.
We can all see the mark up pubs and restaurants make when you can get 6 cans of Stella for £5!!!!
robert, london, uk
No wonder pubs are loosing trade to supermarkets,a £5 bottle of wine from a s/market cost £18 when having a meal in a pub they should get real.Soft drinks cost the earth in comparison and beer is out of all preportion just like spirits.If they want more customers they should reduce prices quickly.
Brian Callaghan, Warrington, England
Don't complain guys. In France it is worse! we pay more and are served by impolite waiters. I am coming to regret your pubs.
Thomas, Nnates, France
"you drink cheaper beer and the wife and kids enjoy a big dose of secondry smoke EVERY NIGHT"
mac, are you trying to suggest you were doing your wife and kids a favour by going to the pub? You drink and smoke every day, have no respect for your family, and that's the fault of politicians? Shocking.
Helen, Oxford,
The main cause of the demise of pubs is high property values,the brewers expect a return on a building worth £400,000. plus. and it just does not add up,plus all the other legislation which militates against the profirability of these small businesses.
Eddy, Bury St.Edmunds,
Pubs used to have a strong communal role. But the internet has changed the nature of community and social interaction. For many, pubs have become an expensive irrelevance.
Also, pubs have lost the support of the over-40s (like me) as they've aggressively pursued young drinkers.
paul rickard, kingston,
It's not that the supermarkets sell drink too cheaply, it's that pubs are too expensive. I am a member of a club that sells beer at £1.68 a pint and, on a Saturday night, the place is full. So in many instances it's the price and not the not smoking ban that is killing the pubs.
D. Barrowclough, Burnley,
Come on, £3 per pint for watered down draught lager, meals £7.95 a plate of fish and chips. Lunch in the pub used to be a regular event, now it would cost over a tenner for a dodgy pint and a plate of rubbish chips. Pubs need to grow up, clean up compete or close, not winge and expect tax breaks
Roarke, Wembley, UK
How sad that the typical quintessential British pub is going down the pan! There is no substitute for good hand pulled beer, good food and the great atmosphere provided by a good licensee. It's the licensee's I feel sorry for. Having spent their life savings investing in a doomed business venture.
Bob Mynett, Sandbach, England
I find that since i been married with young children it costs so much to pay babysitters that its cheaper to buy wine or beer from the supermarket,if we do go out we like to find real ale pubs with no jukebox and that gives good service and serves good food, public houses please take note.
TOM, Dundee, Scotland
There are two reasons I dont drink in pubs one the price £3:40 for a bottle of smirnoff ice, is stupid to the point where I don't do rounds with my beer drink mates, as a pint on cost £1:20.
2nd I resent being treated like a 5 year old and have to use a plastic cup, to drink out side.
MR W Jones, Liverpool, England
People are sick of being ripped off. £2.70 for the cheapest beer in my local
The Govmnt tax the hell out of pub pints which handicaps the pubs. They can't compete.
Either impose the same tax on the supermarkets or cut the tax for the pubs. Surprised the breweries haven't taken the Govmnt to court,
Phill, The Wirral, England
Go to the pub and
a) Get utterly ripped off for average beer
b) Made to feel uncomfortable by yobs for daring to be over 40
c) Get nicked for drink driving as there is no bus or other way to get there
or
d) Have friends round and pay 75% less for beer
Which would you prefer?
David, St Albans, UK
At an average of £3.30 per pint in this affluent area & the current economy, it's no surprise people are forced to change the drinking habits. If JDW can sell beer on average around £2-2.50, why can't other chains such as S&N, Punch, etc. with their buying clout re-invigerate this market?
David, Sunbury-on-Thames, UK
i have two choices.
go to a friends house and imbibe a few beers from the local supermarket,enjoy pleasant company in and safe surroundings, usually with some home made or takeaway food.
or
My local pub.where you can drink expensive badly kept ales in the company of druggies ect.
martin, coventry, west mids
The supermarket business model only works if everyone has a car. Pubs and cars don't mix. Expect pub sales to bounce back as high oil prices force cars off the streets, and buy shares in Wetherspoons.
Malcolm McLean, Bradford, UK
I think the main reason for the pubs in my area being hit is the fact that they are run so badly. Rubbish beer, poor service, filthy toilets, the list's endless. Before the landlords start moaning they should try smartening up there act, then the people may return.
Nigel Venus, Sutton Coldfield,
Rip off prices in pubs and restaurants is the cause, the supermarkets are to be congratulated. I drink at home, it costs nearly £10 for three pints in pub, just over £3 at home and I don't have to listen to loud music or yobbos shouting.
Pete, Barry, Wales
Binge drinking, wholesale and in private cannot be any healthier so why not tax the gimballs off that too?
Tom, Perth, Oz
More community spaces closures due to Labour tax and anti-smoking policies another industry in decline just like housing (HIPS and stamp duty).
steve tea, manchester, cheshire
Good riddance! The beer is so bad anyway, warm, badly kept, un-hoppy, bland, disgusting lagers. So many problems with the beer in this country, I much prefer going to Sainsbury's and buying quality beers from there. If I want to go out for a beer, there is always Eurostar and Bruges, Belgium.
Juha, Epsom, UK
Once again madness reigns super in UK govt. Here's an idea about quit increasing duty every year and try cutting it, Opps I silly me thinking govt would actually reduce taxes. Neo-stalinist govts. ruining cultures and economies an undeniable truth.
Mike, Washinton, DC, USA
get a six-pack from the supermarket, go home and watch telly and smoke and drink with the wife and kids.what could be better? you drink cheaper beer and the wife and kids enjoy a big dose of secondry smoke EVERY NIGHT. clever these politicians!!!!!!!!!
mac, london,
Go back now and re-read all the predictions from the so-called "doomsayers" before the implementation of the smoking ban. Could we now PLEASE review this madness and allow both a smoking and a non-smoking room in every pub. This has driven out the regulars, pub beer sales have dropped. As foretold.
Adrian Leahy, Wigan, UK