In the drink Cost of living up, ABVs down

gradual reduction in beer strengths. The interviewed brewer declared that the prime motivation for reducing abv was to keep the shelf price down at current levels. For example, Stella Artois has moved from five per cent to 4.8 and then 4.6 per cent over the last 12 months

How duty is calculated

The base rate of the segment is multiplied by the abv strength to give the tax to be paid.

or so, Old Speckled Hen has moved from five per cent down to 4.8 per cent, Abbott Ale similarly.

Done without much fanfare, but he asserted that this was in line with market trends towards lower strength drinks and therefore a win-win scenario.

The abv reduction can only o set the other rising cost of manufacture so do not expect to see shelf price reductions. But it is worth checking out the abv, especially if the shelf price looks low.

Wine has less room to manoeuvre. Strengths already vary between 11 per cent and 15 per cent. Strength is critical to the drinking experience and we are seeing prices rising, especially on the bargain-price shelves.

With so much attention on the cost of living and shelf prices, some drinks are reducing strength to save on excise tax, so it is worth having a basic knowledge of the impact of abv (alcohol by volume) strength on the tax component.

The government tax, known as excise duty, on alcoholic drinks is a bit convoluted. Drinks are classified in segments based on their abv, broadly defined as beers, wines and spirits. Each band has a ‘base rate per litre’ which is expressed in pence and then multiplied by the abv to determine the duty due. Plus VAT at 20 per cent is charged on all alcoholic beverages regardless of where they are purchased and consumed.

Beers are classified in three bands, as shown in the table opposite.

To me the alcoholic strength is important to the flavour and texture of the drinks. I prefer the stronger levels, but there is no denying the general trend in the UK market towards lower strength products, or even zero (less than 0.5 per cent abv) alcohol.

The BBC Breakfast programme recently highlighted the persistent, if

Sparkling wines: to 8.5 per cent - 288.10p per litre 8.5 to 15 per cent - 381.15p per litre

Wines above 22 per cent abv charged as spirits

Spirits: 37.5 per cent abv and above - 28.74p per litre

For spirits the abv has a bigger impact on the taste. Mainstream brands like Gordons Gin are at 37.5 per cent, known as UK strength, and the minimum for all gins in the UK to be labelled ‘gin’.

Overseas or in Duty Free shops the strength will be 40 per cent or even 47 per cent, depending on the market they are supplying. Many of the UK boutique gins are deliberately in the 40 to 47 per cent bracket. This band is the same for all spirits from 37.5 abv and upwards: whisky, rum, vodka and so on.

So strength does matter and whether you are a weaker or stronger supporter it is worth checking before you buy.

Editor Jane Hyde 07940 240390 editor@allatsea.co.uk

Art Editor Mark Hyde design@allatsea.co.uk

Contributors

David Henshall

Paul Antrobus

Advertising and Distribution 07596 269681 advertising@allatsea.co.uk

Publisher Jane Hyde 07940 240390 / editor@allatsea.co.uk

Publishing Assistant Marianne Rickard

COMPETITION TERMS AND CONDITIONS - The winner will be notified by email. The winner(s) will be the first correct entry drawn at random after the competition closing date. The draw is final and no correspondence will be entered into. Open to residents of the UK aged over 18. No cash or alternatives will be offered. If any prize is lost or damaged during the course of delivery, All at Sea will provide reasonable assistance in seeking to resolve the problem, but it will not always be possible to obtain replacements for lost or damaged goods, and in that event no financial compensation would be payable by All at Sea or their affiliates. By entering you agree to be bound by all the rules and agree that your name and county may be published in the paper if you win. Please indicate on your entry if you do not wish to receive information about other products and services from All at Sea and competition provider, by phone, post, email or by SMS.

The views and opinions of the contributors to this publication are not necessarily those of the Publishers. Accordingly, the Publishers disclaim any responsibility for such views and opinions. Printed in Cambridge by Ili e Print. All at Sea is copyright and can not be reproduced in any form without the written permission of the Publisher. Every care is taken in compiling the contents, but the proprietors assume no responsibility for any e ect rising therefrom. Articles submitted for consideration must be the original work of the author and not previously published. Where photographs are included, which are not the property of the contributor, permission to reproduce them must have been obtained from the owner of the copyright. The editor cannot guarantee a personal response to all letters and emails received. All at Sea accepts no liability for products and services o ered by third parties. Recycled content of paper in UK newspapers is 78.9 per cent.