Price hikes take toll on mults' beer sales

Beer sales have fallen faster in supermarkets than in pubs as retailers are forced to pass on rising costs.

BBPA figures released this week showed off-trade sales of beer fell 3.7% by volume in the last quarter of 2011, compared with a 3.4% drop in the on-trade.

The increases in duty and supplier costs that had prompted some brands to cut abv (see above) meant supermarkets had struggled to keep prices down, suggested the BBPA, adding that beer prices were 6% higher in December 2011 than in December 2010.

Industry observers suggested brewers have told retailers they want to move away from large case deals used purely to drive volumes.