Drinks industry fears over sales slide

THE drinks industry representative group is forecasting a 10% decline in alcohol consumption levels for 2008.

And it warns of crisis times for the industry in light of new figures showing the slide in drink sales accelerated in September.

According to new monthly excise figures from the Revenue Commissioners, alcohol sales fell by 22% in September, on a year-on-year basis and sales fell by 9% — again on a year-on-year basis — for the first nine months of the year.

These latest figures show a further decline as August’s statistics showed an 18% year-on-year sales fall.

The decline in sales has been seen equally across both the on-trade sector in pubs and restaurants and the off-trade in off-licences and supermarkets.

Sales of beer — the largest alcohol sub-sector — were worst hit last month with year-on-year sales falling by 35%.

Spirit sales were down by 3% on the same month last year and wine was down by 17%.

Representative body, The Drinks Industry Group of Ireland (DIGI), reacted to the September figures by saying that the sharp drop in sales in such a short period is “shocking and unprecedented” and “of a scale that is tipping the industry into crisis, risking jobs in both the manufacturing and pub and off-licence sectors”.

“On the basis of these figures, it is likely that we’ll see a decline in alcohol consumption per adult, of 10% during the current year.

“That’s more than the decline we saw over the past six years combined, which amounted to a 7% drop,” according to DIGI chairman, Michael Patten.

Mr Patten used the figures to make a plea to Finance Minister Brian Lenihan to leave the drinks sector alone in next week’s budget announcement.

He added that the rapidly deteriorating market conditions for alcohol sales in Ireland will be the “number one agenda item” when the DIGI board meets again next week.

“We need to urgently stem the flow and protect jobs and we will be seeking a meeting with the Government to discuss the crisis as soon as possible.

“In the meantime, it is imperative that the situation is not made worse in next week’s budget — there is clearly no crock of gold to be found in today’s drinks industry,” he said.