Butcombe breaks records but faces a tax sting'

A Bristol brewery faces a dilemma ­ curb its increasing salesor risk losing out on the savings from the progressive beer duty announced in this year's Budget. Butcombe Brewery achieved its best ever figures during the last 12 months, producing more than 15,000 barrels of real ale for the first time in its 24-year history. But if sales continue to rise, managing director Simon Whitmore is worried that the brewery could cease to benefit from the introduction of the new duty. "We are at the extreme end of the annual production affectedby the reduction in duty," said Whitmore. "This makes the amount per pint quite small and nothing like the 14p a pint announced by the Chancellor. "Therefore, if our steady increase in sales is maintained, the small reduction in duty which we qualify for now will stop after the next year or two." Whitmore put the sales success due to the growing popularity of its two brands, Butcombe Bitter and Butcombe Gold. Staff were rewarded for reaching the 15,000-barrels mark with a weekend trip to the Munich Beer Festival.