ALCOHOL CONSUMPTION declined by 6 per cent last year, bringing it back to 1997 levels, according to a drinks industry report.
The report by the Drinks Industry Group of Ireland (Digi), based on data from the Revenue Commissioners, found that excise receipts fell by 35 per cent year-on-year in 2008, with the State “haemorrhaging” off-licence sales to Northern Ireland.
In terms of excise receipts, sales of spirits declined by 61.4 per cent last year. Cider sales, mostly of Bulmers, were down by 32.5 per cent, while beer declined by 15 per cent. Wine sales were 7.4 per cent off last year. “As the staggering fall in spirits demonstrates, consumers are clearly opting – quite understandably – to avail of the cheaper prices available in the North,” Digi said yesterday.
In terms of volume, cider was the worst hit, recording a decline of 11 per cent. Spirits was down by 7.7 per cent; beer by 5 per cent; and wine by 4.1 per cent.
Digi chairman Kieran Tobin called on the Government not to increase taxes on alcohol and to consider reducing VAT and excise rates to stem the tide of cross-Border shopping.
“The consequences for the drinks industry are stark,” said Mr Tobin, who is an executive with Irish Distillers Pernod Ricard. “The net effect will be dramatically increased closures of bars, restaurants, hotels and even some off-licences to join the 1,500 pubs that have closed their doors in recent years.”
He said the Government must “wake up” to the “reality that cross-Border shopping and the availability of cheaper alcohol in Northern Ireland is having a detrimental effect” on the industry.
“The redundancies at Bulmers that were announced last week and prospective job losses at other major brewers are likely to be only the beginning if the consumption decline accelerates during the economic downturn.”
