Report highlights considerable growth in off-licence sales

Pubs still account for three-quarters of alcohol sales in the Republic, but their share of the market has slipped as off-licences…

Pubs still account for three-quarters of alcohol sales in the Republic, but their share of the market has slipped as off-licences increase their sales, according to a report.

The first study of the State's off-licence sector, released at a drinks industry seminar in Dublin yesterday, was commissioned by the National Off-Licence Association (NOFFLA).

It shows considerable growth in sales from off-licences of alcoholic drinks, especially wine. The off-licences now have an annual turnover of almost £800 million.

Figures obtained for the study from the Central Statistics Office show that off-licence sales increased from 18 per cent of the alcohol market in 1990 to 25 per cent in 1998.

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In the same period, the share of the market held by pubs has declined slightly - from 82 per cent to 75 per cent.

The study quotes CSO figures which show that by 1998 almost half of all sales from off-licences were in the wine, cider and perry group, compared to 38 per cent in 1990.

The study's author, Mr Anthony Foley, senior lecturer at Dublin City University Business School, said there were a number of reasons for the increase in wine sales and "at home" drinking.

"The competitive prices offered by off-licences, concerns about drink-driving, increased interest in wines and a trend towards entertaining and socialising at home are all generally perceived as driving the growth of the off-licence sector," he said.

The study, which contains a survey of 108 off-licence proprietors, shows that the number of these premises has doubled in the last decade to almost 700.

In the survey the majority of respondents cited attempts by the under-aged to buy alcohol as a problem for their business and almost all said they were in favour of a national ID card system. More than 80 per cent said that adults purchasing alcohol for under-aged was also a problem.

Speaking yesterday, the chairman of NOFFLA, Mr Jimmy Redmond, called for a review of taxation levels on alcohol. "A significant anomaly that exists under the present VAT regime is that the tax take on a bottle of whiskey sold in a shop is 60 per cent, compared to a rate of tax in a pub of 35 per cent," he said. This was "an unfair penalty" on consumers who preferred to drink in their own homes he added.