Beer sales fell by 3.8 per cent in the first quarter of 2011 compared with the same period in 2010, according to figures published today by the British Beer and Pub Association.

The latest UK Quarterly Beer Barometer revealed falls in pub and retail beer sales, although Shropshire’s breweries remain resilient. But the decline of sales in pubs slowed, following an 8.8 per cent fall in the same period in 2010.

While the impact of the 7.2 per cent tax rise in the Budget has yet to surface in the statistics, the BBPA said the good Easter weather and the extended bank holiday season may help the second quarter figures, as people flock to pubs to enjoy the royal wedding and the sunshine.

However, Shropshire’s own breweries appear to be buoyed thanks to the ongoing popularity of real ales over mainline drinks.

Gary Walters, managing director of the Ludlow Brewing Company, said: “We have found quite an increase in sales, to be honest, but local real ales do seem to be on an upward curve.

“People want something locally handmade, that’s tasty. Pubs will struggle a bit on lager and smooth flow sales that are quite bland.”

Edward Wood, managing director of the award-winning Wood Brewery in Craven Arms, said the problems lay at the feet of the Government, but that his company was holding up well against the national statistics.

“The general state of the economy and the fact that beer has been targeted very heavily by the Chancellor has had an effect,” he said.

“He put duty up, but he doesn’t end up with more money because people drink less, and there are a lot of small breweries that he could do with supporting rather than hitting them all the time.

“There’s a lot of competition and it’s a hard battle, but in January and February we did fairly well, March was a little quiet, and April is showing good signs, and we are extremely busy.”

BBPA chief executive Brigid Simmonds said the sector appeared fragile, but that the on-trade showed signs of recovery against the off-trade.

She added that the consecutive bank holidays and good weather will help.

By Business Editor Thom Kennedy