Smoking ban hits sales of alcohol

The Publican newspaper has reported that the smoking ban that came into effect in England on 1st July 2007, having already been introduced into the other UK countries, has significantly reduced pub sales of beer and spirits. According to market analysts Nielsen, around 175 million fewer pints have been drunk in the last year as a direct result of the smoking ban.

In the nine months from July to March volume sales of alcohol in the on-trade in England and Wales fell eight per cent – before the ban the rate was falling at three per cent.

With other factors such as the credit crunch also being taken into account Nielsen estimates that half of the eight per cent drop can be attributed to the ban.

Jake Shepherd, marketing director at Nielsen, said: “The winter months were particularly bad – sales fell 9.3 per cent through November to January when smokers would have been reluctant to stand outside in the cold to have a cigarette.”

Sales of wine were also reduced, but by a lesser amount. They dropped four per cent after the ban compared to two per cent beforehand.

Shepherd added: “Wine has held up somewhat better than other drinks, probably benefiting from the increasing importance of food and women to the on-trade. In Scotland we have seen the sales of both tobacco and alcohol (out of home) stabilise during the second year of the ban being in force so we do not expect these decline rates to continue in the long term. Investment into outdoor smoking areas has been considerable and most consumers have now adapted to the change.”

In addition cigarettes sales are reported to have dropped six per cent since July 1 last year with smokers buying 2.1billion fewer cigarettes between July 1 2007 and April 2008.

Paradoxically, however, research conducted on behalf of The Publican found that although 52 per cent of licensees reported suffering a drop in trade since the smoking ban, the number of licensees supporting it actually increased, with 64 per cent now supporting it compared to 57 per cent before the law came into force.