Beer sales collapse hits North East pubs
PUBS in the North East are being hit twice as hard as others in the UK by a collapse in beer sales.
Figures from market analyst AC Nielsen show the number of pints being pulled in Tyne Tees had fallen by 15.7% on last year - almost double the national average of a fall of 8.4%.
It blamed a combination of reasons, but said the region had been hit particularly hard by the smoking ban.
A downturn in the economy affecting drinkers employed in the North East’s manufacturing sector - which this week conceded that it was entering the most difficult trading period in two decades - also added to the woes of publicans who have been fighting a rearguard battle against supermarket discounting.
Tees Valley pub entrepreneur Alistair Arkley said: “Some of the stats are frightening - it’s like the industry is falling apart.”
Just four months ago Mr Arkley told nebusiness that he was fed up with premature reports of the death of the English pub. But he acknowledged that trade had taken a sudden turn for the worse, with pub closures across Britain accelerating to five a day during the first half of this year, according to the British Beer and Pub Association.
Mr Arkley who has a 50% stake in Billingham- based New Century Enterprises and is chairman of the Passionate Pub Company and Chameleon Inns, said the nail in the coffin locally had been the smoking ban.
“If you look at the number of smokers in the North East and those suffering with bad health because of smoking, the ban has probably had a much greater impact on our region’s pubs than elsewhere.”
But publicans are not ready to throw in the bar towel just yet and the smoking ban might even have given a boost to those offering food.
Hartlepool brewers Camerons said last month that although it was scaling back expansion plans it nevertheless aimed to double its pub estate to 150 by the end of next year, saying it would move away from “wet-led” outlets to pubs with “multiple income streams”.
Elsewhere in Tees Valley, pubs with a strong food offer appeared to be riding out the storm. Andrew Fletcher, general manger of the Crathorne Arms, said: “I think people have got a bit over excited about the credit crunch. Sales are about the same as last year.”
Johan Kirchner, general manager of Pinchinthorpe Hall said turnover was roughly 20% down, although Christmas bookings were three times higher.
And Mike Oldroyd who sank his own money into relaunching The Duke of Wellington in Welbury as the Monks Table gastro pub, was bullish.
“I would say that we are 10% up on last year.”
THE UPSIDE OF THE SMOKING BAN
ACCORDING to Fresh Smoke Free North East, approximately 20,753 people in the North-east quit smoking after the first 12 months of the ban. But Teesside is still well above the national average in terms of the proportion of smokers to overall population.
Health Profiles 2008
(2007 figures in brackets)
MIDDLESBROUGH Smoking adults 34.8% (34.1)
STOCKTON Smoking adults 27.5% (29.2)
REDCAR AND CLEVELAND Smoking adults 26.8% (30.9)
ENGLAND AVERAGE Smoking adults 24.1% (26)
