Cider Duty Increases At 2% Above Inflation (in line with other alcohol)

“Though not entirely unexpected this decision puts at risk the progress the industry has made in recent years to be more sustainable, to increase consumer choice, to address misuse and grow government revenues.

“There are immediate deficit issues to address and that is understood. However, for an industry with an investment cycle measured in decades it is vital that we quickly return to a stable and sustainability duty regime.  This will ensure that the cider industry can continue to again invest at a level that supports the rural economy and brings a return to growth for a very British success story.”

UK Cider industry and duty regime – facts and figures

·         The net impact of the announcement will add around 2p to a pint of cider

·         There are around 500 active cider makers in the UK and NACM members account for c.90% of total UK production

·         At just over 9 million hectolitres per annum the UK market is the largest cider market in the World

·         9 million hectolitres is 1,908,000,000 pints or means over 5.2 million pints of cider (or perry) enjoyed every day

·         The value of sales of cider in the UK is around £2.3bn

·         The UK cider industry now presses around 195,000 tonnes of apples annually, around 45% of all apples grown in the UK

·         Cider’s share of total UK alcohol is around 9% (based on equivalent serve)

·         In 2002 a 2% reduction in cider duty was followed by 4 successive duty freezes. This stability on duty and the innovation and investment of cider makers meant that the value of cider sales doubled between 2004 and 2008, doubling government revenues as a result

·         It is premium cider that is driving growth and this sector now represents 19% of cider sales (by volume). By contrast white cider is in marked and long-term decline and now represents less than 6% of total cider, and hence only ½% of total UK alcohol

ENDS

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