The pub trade is experiencing a “meltdown” with sales down by more than 14 per cent in the first seven months of the year, the Drinks Industry Group of Ireland claimed today.
It said the weak economic environment and lower consumer demand were causing further problems for the sector, which says it has experienced a 25 per cent reduction in sales since 2000. The figures are based on the retail sales index and excise receipts.
The group said publicans were also facing ongoing "cost pressure" which was being generated by Government related costs such as commercial rates and regulation.
"In the short to medium term there is absolutely no sign of market conditions improving for the pub trade," the group's secretary Donall O'Keeffe said. "Rather, the likelihood is that current trends will continue forcing many publicans out of business and thousands of subsequent job losses."
The group also said the reduction in excise duty in the last budget had helped to stem cross-Border alcohol shopping somewhat, with sales recovering by more than 6 per cent.
It said it would work with the Government to identify further stimulus measures in this December's Budget to boost the employment-intensive hospitality industry in order to prevent closures and save jobs.
Last year, a report commissioned by the group stated that as many as 2,000 rural pubs would close their doors in the next decade as their owners retire and the next generation opts not to continue in business.
