Falling drink sales failed to stem increases in the price of the pint last year, according to industry figures released yesterday.
A report commissioned by the Drinks Industry Group of Ireland (DIGI) says that the volume of drink sold in the Republic fell by 3 per cent last year.
But the report's author, economist Mr Anthony Foley of Dublin City University (DCU), said yesterday that the value of alcohol sales in the country still increased because prices continued to rise.
Irish consumers bought €6.8 billion worth of drink last year, compared with almost €6 billion in 2002, despite the fall in the amount that they consumed.
Mr Foley said that a price increase of between 2 and 3 per cent accounted for the rise in value.
He added that pubs would have accounted for most of the price hike.
DIGI secretary, Mr Donal O'Keeffe blamed regulation and inflation for the price increase. "You have to recognise that in the licensed trade, price promotion is illegal," he said.
"And the industry is also dealing with the inflationary pressures that every other business is dealing with, like wages, insurance and local authority charges. It's natural that that's going to be picked up most years."
The report shows that spending on drink between 1997 and 2003 rose by 59.2 per cent.
However, this trend could be reversing, as average alcoholic consumption per person fell by 6 per cent between 2002 and 2003.
The figures also show that drink is swallowing a smaller share of individual spending. In 2003, Irish people spent €6 billion on alcohol, equivalent to €9.70 in every €100. In 1997, the comparable amount was €10.90 in every €100.
Launching the report yesterday, Mr Foley said the indications were that consumption had not dropped dramatically this year, but was more likely to have stabilised or even increased slightly.
He also pointed out that other EU countries with lower alcohol consumption than the Republic have in the past gone through periods of rapidly increasing sales, followed by a decline and a levelling off.
He suggested it was possible that this country was following that trend.
The report shows that the industry as a whole, including production, distribution and retail, contributes €2 billion a year to the Exchequer in taxes, and is responsible for the equivalent of 80,000 full-time jobs.
The industry also spends €1.5 billion a year on goods and services, creating another 9,000 jobs. Its exports are valued at €1 billion, against €572 million in imports.
DIGI chairman Mr Dick Dunne said that the industry could not carry a further excise increase in Budget 2005. Two years ago, the Government increased excise on spirits by 20 per cent, which ultimately sent sales of these products into decline.
