Sales of alcohol declined by 14% last month

ALCOHOL sales slumped 7% in the first eight months of this year and a staggering 14% last month alone — a greater decline than experienced over the past six years combined.

The Drinks Industry Group of Ireland said the decline was a “very significant” development for the industry and could threaten jobs in the high employment sector. It also signals a significant drop in alcohol consumption among the population.

Chairman of the group, Michael Patten, said that the figures — an analysis of excise receipts from the Revenue Commissioners — showed that alcohol consumption levels were falling dramatically over recent years and that the levels would drop further between now and the end of the year.

“On the basis of these figures, it’s likely we will see a decline in alcohol consumption per adult of 8% or more during the current year. That’s more than the decline we saw over the past six years combined,” he said.

Mr Patten said the industry was under increasing pressure because of a combination of a weakening economy and a high cost-base for alcohol producers and retailers.

The group chairman felt the sales slump could have implications for jobs in the industry.

“We are being hit by the double whammy of high costs and a weakening economy. This is worrying news for jobs in the domestic alcohol manufacturers in particular, and for the traditional high-employment retail sector,” he said.

Anthony Foley, of the business school of Dublin City University, who compiled the figures, said a sharp decline in consumption had been seen across all categories and in both the on-trade (pubs, restaurants, etc) and the off-trade (off-licences, supermarkets, etc) sectors. He pointed out that the fall marked an acceleration of a process of decline that had been under way since 2001.

“Despite common perceptions, alcohol consumption in Ireland peaked in 2001 and has been in decline since. These figures show, however, that the pace of that decline has picked up dramatically,” he said.

Director of the Food and Drink Industry Ireland, Rosemary Garth, said some of the decline could be explained by Ireland’s increasing ageing population, but admitted it was a worrying time for the industry.

“It is certainly a very difficult time for the industry at the moment. A lot of it has to do with the economic slowdown and these figures reflect that. Certainly, people within the industry are very concerned about jobs. There is a lot of nervousness out there,” she said.

Over the past seven years, alcohol sales have dropped more than 7%.

In 2001, 14.45 litres of alcohol were consumed per adult (defined as 15 years or older) in Ireland.

In 2006, that figure had fallen to 13.48 litres, a drop of more than 6%.

Yesterday’s figures showed that this drop has continued into 2008.