Drinks sales growth tracks inflation in solid August

Average sales in managed venues in the week to Saturday 16 August were 3.2% ahead of the equivalent week in 2024, according to data from CGA.

This number was only marginally short of the UK’s current rate of inflation of 3.8%, as measured by the Consumer Prices Index.

This result came on the back of a solid seven days to 9 August, when average sales were ahead by 2.4% year-on-year. It continues momentum for drinks sales in the UK after a return to modest increases in mid-July.

There was positive growth on 10 of the 14 days of the first full fortnight of August, and it reached between 8% and 12% from Tuesday 12 to Thursday 14 August.

This coincided with a period of hot weather, with temperatures hitting the early 30s in some parts of the country and consumers heading out to pubs and bars with outdoor spaces.

Long Alcoholic Drinks (LAD) categories fared best in the warm conditions. Beer and cider sales were up 6% and 10% respectively year-on-year in the week to 16 August, after growth of 5% and 3% in the previous seven days. Soft drinks (up 2% and 4%) also had two weeks of increases.

However, it was a negative fortnight for wine (down 5% and 9%) and spirits (down 0.4% and 2%), as consumers migrated to longer and more refreshing serves.

Rachel Weller, CGA by NIQ’s commercial lead, UK and Ireland, said: “It’s encouraging to see the On Premise edging back towards real-terms year-on-year growth in drinks sales, and it is hopefully a sign of things to come in the Autumn, especially if good weather holds.

“Nevertheless, the trading environment remains challenging, and relentless increases in costs are making profit growth much harder for businesses to achieve. Operators and suppliers will need to be resolutely focused on delivering both high quality and good value if they are to sustain growth through to the end of 2025.”