Alcohol Sales Take "Unprecedented Decline"

The Drinks Industry Group of Ireland (DIGI) has revealed alcohol sales fell by a huge 13% compared to the first quarter of last year.

The group said the figures confirmed fears that the major increase in cross-border shopping, combined with the economic downturn had exacerbated the waning industry over the past few years.

The largest decline was in spirits where sales declined by 19.1%. Sales of beer were down 12.4% while sales of cider and wine fell by 12% and 10.6% respectively.

Digi Chairman Kieran Tobin said the fall in alcohol sales was unprecedented and warned of jobs losses across the sector, particular in businesses located in the border region.

Mr Tobin said: "Cross-border shopping remains attractive even after the April UK budget because of the favourable Euro rate of exchange, lower UK VAT rate, lower UK alcohol excise levels and generally lower business and labour costs in Northern Ireland.

"Alcohol excise in Ireland is already very high by EU standards and adversely affects our international tourism competitiveness.

"The Commission on taxation report should take account of the comparatively high alcohol taxation in its recommendations for a reformed tax system."

Mr Tobin added the group was also determined to work with Government to find ways to support the industry and the 90,000 people it employs in pubs, off-licences, production units, visitor centres, hotels, nightclubs and restaurants throughout Ireland.

(DW/BMcC)