The drinks industry is seeing a glimmer of hope as Christmas trading begins, but will it last?
According to the latest report from CGA by NIQ, the drinks sales in managed venues are showing a slight recovery. In the week ending November 8th, sales were 2.3% higher than the same period in 2024, and this positive trend continued with a 0.5% increase in the following week.
But here's the catch: this growth is still not enough to beat inflation. However, it's a welcome change after three weeks of negative trading in October, suggesting that consumers might be loosening their purse strings for the festive season.
The report highlights several factors that contributed to this mini-revival. Bonfire Night celebrations and a packed sports calendar, including Premier League and international football matches, attracted customers to pubs and bars. The start of Christmas markets may have also played a role in increasing footfall.
However, Storm Claudia put a damper on the celebrations, particularly on November 14th, when sales took a hit with an 8.2% year-on-year drop.
And here's where it gets interesting: long alcoholic drinks, such as beer and cider, saw significant sales growth, with beer sales rising by 3.6% and 1.7% in the respective weeks, and cider even surpassing that with a growth of 5.5% and 2.9%. Soft drinks also had a positive fortnight.
On the other hand, spirits and wine sales in on-premise locations struggled, with spirits sales declining and wine growth being minimal.
Rachel Weller, NIQ's commercial lead, offers a hopeful perspective, suggesting that consumers might be gearing up for more festive outings. However, she also acknowledges the unpredictable nature of the industry, especially with weather-related challenges.
The Daily Drinks Tracker, a comprehensive analysis tool, provides valuable insights into the drinks market, helping businesses navigate this critical festive period. Will the drinks industry maintain this momentum, or will it be a short-lived recovery? The coming weeks will be crucial, and the industry eagerly awaits the verdict.
