100 million alcohol units removed from market as new duty regime boosts independent beer sales
Monday, October 28, 2024
A considerable reduction in the number of alcohol units being sold has been observed following the implementation of a new duty structure for alcohol, with brewers having successfully removed approximately 100 million units from the market.
Independent Breweries Thrive Under New Alcohol Duty Regime
According to the British Beer and Pub Association, the results demonstrate that targeted government support for businesses can lead to significant economic benefits while also contributing meaningfully towards achieving key public health objectives.
In the context of the Alcohol Duty Review initiated in August 2023, a key policy change involved reducing the tax burden on drinks with an alcohol by volume (ABV) of 3.4% or lower, while also introducing a draught relief measure specifically designed to benefit pubs.
As a direct consequence of the revised duty rates for drinks with an ABV of 3.4% or lower, along with the introduction of draught relief for pubs, brewers shifted their focus towards developing and manufacturing lower strength products, ultimately resulting in the removal of 100 million alcohol units from the market over the course of just one year.
"People want to support smaller independent businesses, but when buying these beers they're actually spending their money with global beer giants."
Andy Slee
According to the BBPA, there has been a substantial rise in the proportion of beer sales accounted for by drinks with an alcohol strength falling within the 1.3-3.4% range.
Furthermore, the no and low alcohol beer segment has witnessed a remarkable surge in growth, reaching a significant share of around two percent within the broader market by 2024.
The UK holds the position of having the second-highest duty rate on alcohol within Europe, with Finland currently ranking first in this regard.
This significant decrease in alcohol units sold serves as a compelling illustration of the substantial contribution that the industry can make towards achieving public health objectives.