The British Beer and Pub Association (BBPA). has said in a recent report that pub closures in the UK were running at 5 per day. Whereas CAMRA the campaign for real ale, puts closure levels at a much more optimistic 57 per month or roughly 2 per day.
So gauging how bad the situation is very much depends on who you talk to, but one thing is for certain, the pub trade in the UK is definitely having a hard time in 2008.
The industry is angry with the government for pressing ahead with tax rises, when it is facing the toughest trading conditions for years. With pressure on household budgets, last year's smoking ban, cheap alcohol offers in supermarkets, and the miserable summer weather encouraging drinkers to stay at home.
Investor concern over the health of Britain's two biggest pubs groups, Punch Taverns and Enterprise Inns, gained momentum over the summer and shares in both have now lost more than half of their value since the start of the year.
The BBPA has recently launched its axe the beer tax campaign demanding an end to tax rises above the rate of inflation, and similarly CAMRA has campaigned for a fair deal on beer tax, including launching a facebook group in July 2008. All with so far little response or action from the government it has to be said.
With little sign of an economic upturn the near future, and consumer confidence remaining low, I predict a tough time for the pub trade for the rest of 2008 and indeed 2009. The only bright light at the end of the tunnel is as with all economic recessions, (yes I know we are all still pretending we aren't in a recession but whatever label you put on it things ain't great are they), businesses that can survive emerge leaner filter and in a great position to profit on the upturn during the recovery.
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