Brit beer sales at lowest level since Depression

"We need a change of approach from the government," Hayward said. "Brewing is a major industry, beer our national drink and pubs a treasured part of our national culture."

However, there are fears that the sliding pub beer sales will have the effect of spurring on another, less attractive, aspect of British culture as cash-strapped pub owners return to sales promotions that encourage binge drinking — such as selling cheap drinks until a team scores in a soccer match.

Around half of Britain's 57,000 pubs have ditched a voluntary code banning aggressive happy-hour deals and other promotions after the beer and pub organization said it could be in breach of European competition law, prompting police to call on the government to step in. That has raised speculation about an intense price war among pubs in Britain's major cities and towns.

"Sadly, the trade repeatedly shows that it cannot be relied upon to consistently act in a responsible way," said Chris Allison, a spokesman for the Association of Chief Police Officers.

Some pubs are beefing up the food side of the business to make up for declining beer sales. Mitchells & Butlers, Britain's second largest pub group, revealed last week that beer now accounts for just a quarter of all revenue but that it now serves some 110 million meals to customers each year.

Enterprise Inns, which has about 7,700 pubs, said it has had to give more help to licensees who are having to cope with difficult trading conditions.

After battling with the smoking ban in England, which marked its first anniversary this month, the pub chain said it was struggling to cope with pressures on consumers' disposable income, such as high mortgage costs, petrol prices and gloomy sentiment.

However, in good news for the trade, some consumers suggested that traditional pubs could survive by transforming to meet new demand.

Ian White, 44, an IT director for a hospital, a nonsmoker visiting London from Leeds with his wife and three sons, said he goes to the pub more these days.

"They're increasingly more friendly to families, the quality of the food has increased," White said. "The ones that are closing aren't seeing the threat and the opportunity. Their old clientele who just wanted to booze and smoke are less inclined to go, but people like me are more inclined to go."

Also in msnbc.com business Your Career: Married to the job, and each other Answer Desk: Qualifying for more jobless benefits Venza sorta-crossover is Toyota’s latest mistake ConsumerMan: Chinese drywall remains a big threat   Video: This beer would cost you at least $8,000

MORE FROM WORLD BUSINESS

World business Section Front

Obama tops Forbes world’s most powerful list Ambassador: Tax amnesty affects UBS case Dell smartphone to debut in China, Brazil BA, Iberia say merger a plus for passengers Mexican business groups call for U.N. troops Apple can see Microsoft on the horizon Russia’s leader urges modernization Chinese automaker aims to compete globally Cadbury rejects hostile bid from Kraft Foods Nokia will recall 14 million faulty chargers World business Section Front   Add World business headlines to your news reader: