Craft brewers slam extra duty on strong beers

By Ewan Turney

- Last updated on GMT

Related tags Beers Beer Government

BrewDog: unhappy with duty proposals
BrewDog: unhappy with duty proposals
The move to increase duty on beers above 7.5%abv will handicap brewers producing niche, artisan beers.

The move to increase duty on beers above 7.5%abv has been slammed as "unfair" and one which will handicap brewers producing niche, artisan beers.

The Government yesterday announced plans to introduce a lower duty rate on beers below 2.8%abv but increase duty on beers over 7.5%abv. It said this would target "the consumption of cheap, 'super strength' lagers that are also associated with high, and dangerous, levels of alcohol consumption".

But some brewers of craft, niche beers have hit back at the Government. Dark Star boss Paul Reed said the move was a "farce". He said: "Applying these rules to craft beers such as Imperial Stouts is missing the point — our craft beer scene, and creativity in the sector, could be hit by this and these beers clearly aren't part of the problem."

In its report on alcohol taxation, the Government said it recognised that craft beers are "often consumed in a different way to the 'super-strength' lagers because they are served in smaller volumes (330ml) and frequently consumed with a meal" but considered "it is likely that their consumers are not very price sensitive because they choose these beers specifically for their taste and already pay a high price."

Handicap

Scottish brewer BrewDog also hit out at the proposals. "It is yet another example of the authorities not tackling the main issue but instead penalising niche, artisan producers like BrewDog.

"They are completely toothless in the face of the real roots of alcohol abuse. The new law is completely unfair — if beer duty is to rise, it should rise uniformly. Instead we are handicapped in the market place for trying to elevate the status of beer in the UK.

"The abv of a beer has nothing to do with whether it inspires irresponsible drinking and to think otherwise is short-sighted. There is a culture of quantity over quality in the UK beer market — consumers are able to buy mountains of mainstream, 5-6%abv beer for very little money and this is the kernel of the problem in the UK.

"Higher alcohol beers, in the main, tend to be more exciting artisanal beers that elevate beer above its current station in Britain and increase awareness of great craft beer."

Dave Bailey of the Hardknott Brewery said: "My business, which includes a very small but growing wholesale business in stronger imported beers, is threatened with a significant increase in tax burden.

"I feel this is simply unfair and I'm very, very angry about it. On top of alcohol escalator and VAT rises this is going to hit our niche very hard indeed."

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