Read your free copy of The Caterer Drinks Guide 2022
For the first post-Covid edition of The Caterer Drinks Guide, edited by John Porter, sector analyst CGA has provided data comparing annual drinks sales in the on-trade to 26 March 2020, just as the pandemic began to have an impact, with annual sales to 26 March 2022.
In addition, there is data comparing the three months to 26 March 2020 with the three months to 26 March 2022. The value of this single-quarter data is that by eliminating nine months of 2021 from the figures, it gives a more up-to-date picture of how specific categories in the drinks sector are currently performing. This data shows that spirits, cocktails (including dispensed and ready-to-drink cocktails) and soft drinks, as well as some parts of the beer market, are doing well and seeing customers trade up. Other categories, such as cider and still wine, are seeing less interest.
According to the CGA data, annual total on-trade drink volumes to March 2022 were down 21.8% compared with the year to March 2020, and total value was down by 14.9%, from £30,716m to £26,143m. As for the three months to March 2022, total drinks volumes (measured in hectolitres – HL) were down 5.3% compared with the three months to March 2020, while value rose by 4.4%.
A certain amount of sense-checking is needed with the figures given here. Where total volumes are down, this is in part due to a smaller total number of outlets trading for some or all of the period. Equally, sharp increases in value need to be considered in the light of the high rates of food and drink inflation, particularly since the start of this year.
Paul Bolton, client director for GB drinks at CGA, says: "While it is impressive that the on-trade has bounced back to near-parity so quickly, it is important to remember that most categories are performing behind inflation versus 2019.
"In 2022, there are a number of rising pressures including debt accrued over the pandemic and the cost of living increase for consumers and its impact on confidence, pricing, staffing and supply chain issues, which all make the rest of the year a huge challenge for suppliers and operators."
