NEWS
4 ASIAN TRADER 21 FEBRUARY 2025
Sales of low- and no-alcohol
beer were 20% higher in
December than January,
suggesting that traditionally
the month of abstinence has
been overtaken by December in
terms of alcohol consumption.
Tesco experienced record
demand for alcohol-free
beverages in the four weeks
running up to Christmas with
sales up by more than 15% on
2023.
According to David Albon, a
beer and cider buyer at Tesco,
quite contrary to five years ago
when the main demand for no-
and low- drinks came in “Dry
January”, it is now a trend,
especially among young
people.
Tesco confirmed that
interest in dry January is still
growing, with demand for
low-alcohol wine particularly
strong during the month and
sales up 15%. Sales of alco-
hol-free beer were up 10% and
alcohol-free spirits up 5%.
Among the most popular
choices from the chain in
January were 12-packs of
Corona 0.0%, with demand up
by more than 250%, and
doubled sales for 10-packs of
Guinness 0.0.
Christmas beats Dry January
for zero-beer sales
What’s in store
here is a fresh President in the Whitehouse energeti-
cally signing new orders and laws, and “animal spirits”
are rampant in the USA as it works to re-industrialise,
after deciding to divert away from China, and as it continues
to “Drill, baby, drill!” ensure its supply of plentiful and cheap
energy. Unlike the UK.
In the UK, bond yields are on the rise without respite –
meaning that investors do not trust the government to
manage its ballooning debt, as the value of the currency falls.
In the media, despair about the UK’s economic prospects fol-
lowing on from (current ...) Chancellor Rachel Reeves’s
Budget appears to be gathering and the UK is rumoured to be
on bond “suicide watch”: an intervention from the IMF, as in
1976, might soon be needed to force the government to cut
back its expenditure.
How will this threatening economic climate afect
grocery and the c-channel? As we always repeat, the sector is
extremely resilient, as food is the one thing nobody can go
without for longer than a few hours (“three days without a
meal is a revolution”, as the saying goes). Nonetheless, it is
good to stay aware of what lies ahead after the Budget
measures take efect in early April, and to prepare for them
as best you can.
It goes without saying that although interest rates just
came down a tiny tad, taxes, overheads and prices are way
up, not just under this Labour administration, but also the
previous Conservative one, which boasted the highest
taxes since WWII and the highest inflation since the
1970s. That means purse-strings are already tightened.
Point one.
Then there are new workplace regulations coming in
alongside a massive rise in the minimum wage, which will
add bigly to retailers’ costs before any revenue is earned.
A National Insurance increase puts the sour cherry on the
wages cake, and then that is washed down with a bitter dram
of business rates. Ending the relief that had kept many
businesses afloat since Covid will doubtless hurt lots of
enterprises as it constitutes an increase for some of up to
140% – and will result in closures without doubt.
Next comes the extra work (meaning time, meaning
money, as in costs) for the latest recycling rules – again, read
all about it here and on the website in greater detail.
And don’t forget increased alcohol duties!
Then, June 1 brings the disposable vape ban, and there are
many ways to get yourselves a nice fat fine, so do check out
the detail of what exactly counts as disposable and what
doesn’t – again, here, and on the website with downloadable
guides.
At least by then the sun will hopefully be shining, as we
see what our leaders are planning to burden business with
next: namely, DRS which is ploughing its way through
Parliament right now, despite loud warnings from super-
market bosses that the 2027 start date is unworkable. After
that, we can look forward to minimum unit prices for
alcohol, which Wales is being threatened with right now.
Businesses are facing a rise of
“140%” in property costs due
to the government’s decision
to cut relief for the retail and
hospitality sector from 75% to
40%.
The decision will see
thousands of shops, restau-
rants, pubs, gyms, and
nightclubs grappling with
surging rates bills from the
beginning of April.
This increase in business
rates – forecast to raise £26
billion in England this year – is
expected to place further strain
on an already pressured high
street.
The Conservative govern-
ment introduced the relief
scheme in 2022 to cushion the
sector from high bills.
It provided eligible proper-
ties with 75% business rates
relief up to a cap of £110,000 per
business. Rachel Reeves
announced in October that this
would be reduced to 4%.
This will mean that retailers
benefiting from the relief will
find their business rates bills
increasing in April on average
from £3,751 a year to £9,003,
and restaurants on average from
£5,563 to £13,351.
A Treasury spokesman said,
“Without our action, business
rates relief for retail, hospitality
and leisure would have ended
completely in April this year.
“Instead, we are protecting
one in three business properties
from paying business rates,
extending 40 per cent relief for
250,000 properties in retail,
hospitality and leisure and
introducing a new permanently
lower business rate in 2026,
while more than half of
employers will either see a cut
or no change in their National
Insurance bills.”
Labour’s manifesto had
pledged to replace the system by
raising the “same revenue but
in a fairer way”.
Further strain on high street retail, hospitality to come
Business rate bill to surge by
Business rate bill to surge by
‘over 140 per cent’ in April
‘over 140 per cent’ in April