Wine bucks trend with demand for beer flat

WINE was the big winner in the Irish drinks market last year as new figures from the drinks industry showed demand for beer was flat during 2004.

The Drinks Industry Group of Ireland (DIGI), which includes brewers, distillers, publicans and wine distributors, said overall alcohol consumption was a “modest” 1% higher in 2004 than in the previous year, when measured per head. But demand for alcohol was still lower than the figure recorded in 2000.

DIGI research, based on figures from the Revenue Commissioners and the Central Statistics Office, found wine had bucked the overall trend during 2004 and saw its share of the alcohol market shoot up from less than 17% to 19.3%.

This put the category ahead of spirits for the first time after drinks such as whiskey and vodka saw their market share grow at a slower rate, from 18% to 18.6%.

Sales of beer continued to slide and its share of the market dipped by around 0.5% to 53.3%, while cider’s market share edged ahead from 8.6% to 8.8%.

DIGI said the figures showed the changing nature of the drinks industry in Ireland.

“This research shows that we are already moving towards a more European-style market for alcohol in Ireland, with a growth in off-licence sales and an increasing market share for wine,” said chairman Dick Dunne.

“The figures also highlight that the problem of excessive alcohol consumption is reducing with per capita consumption figures already below those recorded four years ago.”

Industry observers say pub sales have fallen as drinkers reacted to the smoking ban and perceived high prices by staying at home and buying from off-licences instead.

The group also said its research found the drinks industry paid over €2 billion to the Government in the form of excise duties, VAT and other taxes during the year. It claimed credit for creating more than 80,000 jobs, which were split between manufacturing, distribution and the retail and pub trades.