Mixed Q1 for UK drinks sales

CGA Strategy’s Drinks Recovery Tracker has revealed a “reasonable outlook” for Q1 with wine sales up but spirit sales down.

It revealed wine sales have seen growth every week in 2023 as older consumers returned to pubs, bars and restaurants after the pandemic.

Meanwhile, beer sales were in year-on-year growth in 13 of the first 16 weeks of 2023 helped by screenings of Six Nations rugby and football.

Cider sales, while dented by bad weather, were also in year-on-year decline for only four of the 16 weeks. Soft drinks had a solid start to 2023 as many consumers embraced Dry January but growth has been more muted since.

In the spirits category there has been year-on-year growth in only three weeks this year, and double-digit declines in six.

CGA said this is partly a result of tough comparatives with 2022, when many consumers were still celebrating the end of Covid restrictions but also reflects the “squeeze on spending”, with many consumers turning to cheaper drinks like beer.

The CGA added it is hoped that the three Bank Holidays in May, alongside improved weather, will lead to a further uplift in drinks sales.

Jonathan Jones, CGA’s managing director, UK and Ireland, said: “The first quarter was something of a rollercoaster ride for drinks operators and suppliers. It’s been encouraging to see that consumers remain very keen to drink out when they can, but soaring household bills are clearly leaving them with less discretionary spending.

“High inflation will make trading conditions tough throughout 2023, though a third Bank Holiday weekend in May will be a welcome bonus. In such a competitive market, it will be crucial for suppliers and operators to closely track sales and consumer trends and identify the opportunities for growth.”