The drinks industry is showing signs of recovery, but will it last?
According to the latest report from CGA by NIQ, the drinks sales in managed venues are on a positive trajectory as the holiday season approaches. In the week ending November 8, sales were up 2.3% compared to the same period in 2024, and this growth continued with a 0.5% increase in the following week.
But here's the catch: these figures, though promising, still lag behind the UK's inflation rate. However, they mark a turnaround from three consecutive weeks of negative trading in October, suggesting that consumers might be loosening their purse strings for the festive season.
And what sparked this turnaround? A combination of factors! The early November boost can be attributed to Bonfire Night celebrations, a packed sports calendar with Premier League and international football matches, and rugby union fixtures for England, Scotland, and Wales. Christmas markets also likely played a role in drawing people out.
But nature had other plans. Storm Claudia disrupted this upward trend, particularly on November 14, causing a significant 8.2% year-on-year sales drop.
Now, here's where it gets interesting. Long Alcoholic Drinks sales, including beer and cider, have been thriving thanks to live sports events, with growth rates of 3.6% and 5.5% respectively in the week of November 8. Soft drinks also saw a positive fortnight. However, spirits and wine sales in on-premise locations struggled, declining in the same period.
Rachel Weller, NIQ's commercial lead, offers a hopeful perspective, stating that despite the marginal growth, it's a positive sign that consumers are returning to pubs and bars for Christmas celebrations. She acknowledges the impact of weather on trading and expresses optimism for the festive season, which could be crucial for businesses after a challenging 2025.
The Daily Drinks Tracker, part of NIQ's research services, provides valuable insights into sales trends across Britain's licensed premises. But will this growth trend continue, or is it just a fleeting spark in the drinks industry's recovery? What do you think?
