The Drinks Industry Group of Ireland [DIGI] has reported an accelerating decline in alcohol consumption during the first nine months of this year. An analysis of excise receipts from the Revenue Commissioners reveals that alcohol sales are down 9% in the first nine months of the year [January – September inclusive] and are down 22% in the month of September alone [compared to the same month in 2007].

Speaking today, Michael Patten - Chairman of DIGI – said that the sharp drop in sales in such a short period is shocking and unprecedented and of a scale that is tipping the industry into crisis, risking jobs in both the manufacturing and pub and off-license sectors. “On the basis of these figures, it’s likely that we’ll see a decline in alcohol consumption per adult of 10% during the current year – that’s more than the decline we saw over the past six years combined [-7%].”

Patten said that the industry was under pressure largely because of the weakening economy. Just as alcohol sales grew in line with the economy, the opposite is now the case. In addition, the high cost base for alcohol producers and retailers, including excise, is encouraging more consumers to purchase alcohol in Northern Ireland where off license sales are up 20%.

The September figures from the Revenue Commissioners show that purchases of beer were worst affected, declining by 35% for the month compared to September 2007 and by 11% year to date. Beer is the largest alcohol product sector. Spirits declined by 3% in the month and by 8.4% year to date. Wine is down 17% in the month and 6% year to date. Cider recovered sales in the month by 4.4% (vs Sept. 2007) but remains down by 8.4% year to date.

The decline had been seen across alcohol categories and in both the On-Trade [pubs, restaurants etc] and the Off-Trade [off-licences, supermarkets etc].

Patten said the rapidly deteriorating market conditions for alcohol sales in Ireland will be the number one agenda item when the DIGI Board meets next week. “We need to urgently stem the flow and protect jobs and we will be seeking a meeting with the government to discuss the crisis as soon as possible. In the meantime it is imperative that the situation is not made worse in next week’s budget – there is clearly no crock of gold to be found in today’s drinks industry”.