2 | Market structure, trends
and developments
Exports
In 2010, 6.8 million hectolitres of beer that was produced
in United Kingdom, was exported to over 120 different
countries. The main export markets are France, Ireland,
and the USA.
Imports
Some 19% of the beer sold in United Kingdom is
imported. In 2010 approximately 8.6 million hectolitres of
beer was imported. The main import markets are Ireland,
Germany, and France.
Consumption patterns
Beer consumption continued to fall. The beer consumption
in United Kingdom has been decreasing since 2007. The
consumption per capita was 73.7 litres in 2010. The trend
continues to be away from consumption in the on-trade to
purchase in the off-trade for consumption at home.
Consumers are drinking a wider repertoire of drinks,
including spirits, cider and wine - at the expense of beer.
Beer in 2008 Beer in 2009 Beer in 2010
Off-trade sales
48%
50%
49.1%
On-trade sales
52%
50%
50.9%
Developments in the beer sector
Taxation
Under the duty escalator (which is set to remain in
place until 2014/15) annual excise duty increases are
by the rate of infation plus 2%. VAT increased to 20%
on 4 January 2011. New excise duty rates for high
strength beer (25% greater than the standard rate) and
low strength beer duty (50% of the standard rate) were
announced in the 2011 Budget.
Marketing
The voluntary code on marketing was strengthened to
include online advertising and marketing. A pledge was
made by most brewers to restrict marketing in the vicinity
of schools, etc; There has been an increase in marketing
restrictions across the UK particularly in Scotland. In
Scotland an Alcohol Bill was passed which has led to
signifcant restrictions on promotions in both the on- and
the off-trade. Further restrictions were made to the on-
trade retail of alcohol in England and Wales. There is also
an increased focus on unit labelling.
Health and Consumer
The Public Health Responsibility Deal, which was
developed in 2010, was launched in early 2011. Under
this, the majority of brewers have committed to a series of
voluntary pledges to assist in reducing alcohol-related harm.
These include labelling of products, funding of consumer
information campaigns and tightening of marketing self-
regulation via development of a new sponsorship code
including an element of responsible drinking.
Minimum pricing
There continues to be pressure from a group of medical
professionals for the Government to introduce a minimum
unit price for alcohol. The Government has announced
its intention to ban below-cost sales, but this has not yet
been introduced.
Malting barley
There was a disruption in to the supply through global
weather conditions.
Other raw materials
There are some concerns about the pressure of the
exchange rates as well on a possible water scarcity.
The Contribution made by Beer to the European Economy
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