Sharp decline in alcohol consumption this year

There has been a sharp decline in alcohol consumption during the first half of this year, according to the Drinks Industry Group of Ireland (DIGI).

An analysis of excise receipts from the Revenue Commissioners reveal sales of alcohol were down 14 per cent last month compared to August 2007 and fell by 7 per cent during the first eight months of the year.

DIGI chairman Michael Patten predicted today the decline in alcohol consumption will continue.

“On the basis of these figures, it’s likely that we’ll see a decline in alcohol consumption per adult of 8 per cent or more during the current year, that’s
more than the decline we saw over the past six years combined,” he said.

Mr Patten said the industry was under pressure due to a combination of a weakening economy and a high cost base for alcohol producers and retailers

“We’re being hit by the double whammy of high costs and a weakening economy. This is worrying news for jobs in the domestic alcohol manufacturers in particular and for the traditional high-employment retail sector.”

Tony Foley, an economist with Dublin City University who carried out the analysis, said sales of alcohol were down in pubs and restaurants as well as in off-licences and supermarkets.

He said sales of alcohol had been falling in Ireland since 2001.

“Despite common perceptions, alcohol consumption in Ireland peaked in 2001 and has been in decline since. These figures show however that the pace of that decline has picked up dramatically.”