Comment - High abv beer duty

September 2011

In 2010, the Government announced plans to introduce a higher rate of duty for beers over 7.5% abv; the new tax comes into effect October 2011. Here is the James Clay view.

Every wine beer over 7.5% to pay more duty

The reason for the duty hike was stated as being to tackle “problem drinking without unfairly penalising responsible drinkers, pubs and important local industries”. We believe the policy is set to do precisely the opposite, by unfairly penalising responsible drinkers, pubs and important local industries.

Nigel Stevenson, speciality beer consultant at James Clay, comments:

“The policy has unfairly singled out beers over 7.5% as the root cause of problem drinking. These beers actually account for less than 0.5% of UK alcohol sales, whereas 99%+ of wine sales are over 7.5% abv: So why is the Government pointing the finger at world classic beers such as Duvel, Brooklyn Black Chocolate Stout and Schneider Aventinus – each of them the Mouton Rothschild of their styles – and not wine? The folly lies in the fact that these beers are more akin to a fine wine in the way they are reverently crafted and consumed.

“Ministers seem blissfully unaware that great beers are infinitely more difficult to create than fine wine, and created from a far broader array of ingredients: a wide variety of cereals – barley, wheat, rye, oats, sorghum etc; a range of kilnings of malts; a spectrum of diverse water sources; and a palate of exotically flavoured hops.

“Many beers of 7.5% abv and over are hugely revered in their own countries and by connoisseurs worldwide. And the recent introduction of third of a pint glassware for beer, with the two third of a pint potentially legal from 1^st October 2011, means that the ideal glass can be chosen for the strength and the flavour of each beer. Serving beers in small quantities or in elegant glassware with food is a growing trend in the UK.

“The policy sends a clear message to the UK alcohol industry that the government is alarmingly out of touch with the market and to the real cause of problem drinking: Cheaply priced alcohol in supermarkets.

“It’s a shame that while trying to tackle problem drinking, ministers risk impeding a growing momentum for quality beers enjoyed by responsible drinkers. However, despite the new high abv tax, we believe that these great beers remain an affordable luxury for beer drinkers who enjoy flavour complexity. They remain excellent value when compared to wines.

“To borrow a term from our friends at Flying Dog Brewery in Maryland, “Good People Drink Good Beer” and our stance is clear: Please don't penalise the good people, but help us educate those who have not yet found the true beauty of our national drink.”

The new beer tax will affect 27.4% of beers from our wide range of regularly stocked beer.