FDBusiness.com

Britain Affirms its Love For Gin After Spirit Duty Revenues Top Beer For First Time

 Breaking News
  • Fane Valley and ABP to Extend Joint Venture Arrangement Northern Ireland-based Fane Valley Co-op and ABP Food Group, the Irish and international meat processor, are to extend their joint venture relationship to include Linden Foods, the UK-based meat processing business of Fane Valley. The partnership will see Republic of Ireland-based ABP Food Group take a 50% stake in the Linden Foods company. An agreement in [...]...
  • Walsh Whiskey Distillery Agrees French Distribution Deal Walsh Whiskey Distillery, the independent Irish distillery, has signed an exclusive agreement with Dugas of Paris, for the distribution, throughout France, of its range of Writers’ Tears premium Irish whiskeys from the 1st September 2017. Established in 1980 by Francois-Xavier Dugas, the Dugas company is a renowned distributor of leading spirits with a particular emphasis on [...]...
  • IRI Launches New Growth Solutions Team to Unlock Opportunities for Manufacturers IRI, the global provider of big data and predictive analytics for FMCG manufacturers and retailers, has launched a new Growth Solutions team providing specialist assistance for manufacturers. The Growth Solutions team is being set up to support IRI’s clients across five specific focus areas: Media Strategy and Optimisation, Shopper Marketing Effectiveness, Price and Promotions, In-Store Activation [...]...
  • CROWN Food Europe Wins Gold Award in 29th DuPont Awards For Packaging Innovation CROWN Food Europe, a business unit of Crown Holdings, has been honored with a Gold Award in the 29th DuPont Awards for Packaging Innovation for its easy-open foil sealed can. The Peelfit™ can, which enhances convenience, lightweighting and product protection, was highlighted as a standout product in the ‘technological advancement’ and ‘responsible packaging’ categories of [...]...
  • Patak’s Paste Pots Unleash Indian Flavours Easily With Design by Hornall Anderson A new range of spice Paste Pots by Patak’s has launched into Morrison’s with contemporary packaging design by Hornall Anderson. To showcase the intense aromas and flavours generated by the paste pots and forge a sensory experience for the consumer, graphic squirls feature on the front of pack. Patak’s wanted to communicate the benefits of its [...]...
  • Ishida RVE Multihead Weighers Raise the Bar Ishida is launching a new series of mid-range multihead weighers for the high performance weighing of free-flowing and semi-sticky products for a large number of dry, fresh and frozen food applications. The new Ishida RVE range is available in a wide choice of models – including 10, 14, 16 and 20 head models – together with [...]...

Britain Affirms its Love For Gin After Spirit Duty Revenues Top Beer For First Time

Britain Affirms its Love For Gin After Spirit Duty Revenues Top Beer For First Time
June 08
09:38 2017

Sales of spirits brought more money to the British Treasury than beer for the first time ever, latest HMRC figures have revealed. The Wine and Spirit Trade Association says the gin boom – sales of which have surged 12% the fastest growth rate of any spirit drink according to the latest WSTA Market Report – has helped spirits overtake beer in an historic industry first.

The Treasury earned an extra £225 millon in revenue from spirit drinkers thanks to a freeze in spirits duty in the 2016 Budget, taking its total spirits duty to over £3.38 billion. Beer duty was also frozen and led to a contribution of £3.32 billion.
However concern has been raised that the growth in sales of spirits and duty revenue could falter as spirit makers were slapped with a painful 3.9% rise on alcohol duty in the March Budget which added another 30p to a bottle.The UK’s high duty rates mean that UK consumers pay 25% of all spirits duties collected by EU member states and a staggering 76% of the average price of a bottle of gin is taken up in duty and VAT.
The Chief Executive of the Wine and Spirit Trade Association Miles Beale says: “The WSTA dubbed 2016 the year of gin and the gin boom has had a large part to play in the windfall now being enjoyed by the Treasury. The 7% increase on revenue takings came as a result of the Chancellor freezing spirit duty in 2016 and allowing the industry to grow and invest. It proves the point that cutting or freezing spirits duty brings rewards, which is why the inflation busting rise in duty this year was such a disappointment and threatens the industry’s ability to invest, grow and export.”Wine remains at the top of the table cashing in over £4 billion for revenue coffers this financial year.
The UK has the 4th highest spirits duty rates in the EU with 77% of a bottle of spirits accounted for by tax.
Every time consumers buy an averaged priced 70cl bottle of spirits, at 40% abv, £10.33 goes straight to the Chancellor’s purse.
The UK pays more in alcohol duty than Germany, France, Poland, Italy and Spain combined.
Below is the HMRC alcohol tax revenue table:
 £m 2015/16 2016/17 % change
Wine 3,973 4,169 5%
Spirits 3,147 3,378 7%
Beer 3,271 3,320 1%
Cider 296 288 -3%
Total 10,687 11,155 4%

The WSTA is the UK organisation for the wine and spirit industry, representing over 300 companies producing, importing, transporting and selling wine and spirits. The WSTA works with its members to promote responsible production, marketing and sale of alcohol.

About Author

mike

mike

Related Articles



Food & Drink Business Conference & Exhibition 2016

Upcoming Events

  • June 25, 2017Summer Fancy Food Show
  • June 27, 2017Allergens – challenges facing the food industry
  • July 4, 2017BRC compliance – top non–conformances
  • July 21, 2017Snackex
AEC v1.0.4

The Magazine

F&D Business Preferred Suppliers

Advertisements