Nov 1, 2024
The Chancellor has just announced a wide range of changes in one of the longest Budget statements seen in recent years. The sheer complexity of changes included in the statement will take time to review and better understand the full impacts for businesses. However, at first glance, there is little for the cider industry to cheer about.
UK Cider making has a unique business model. It is partly about making cider by fermenting apple juice to make alcohol, but when blended by a skilled cider maker, it is about marketing and selling a wonderful range of drinks, running a business that employs people and contributing to the local community. Cider makers also grow apples and work closely with local farmers to ensure that there is sufficient fruit to make their ciders, working together to harvest and mill the fruit to make the much-needed apple juice.
The Autumn Budget appears to have targeted each of these aspects of cider making in ways that will negatively impact the industry for years to come.
Alcohol duty was increased for packaged ciders by the higher rate of inflation figure from February next year. The cider industry had asked for a reduction in duty to reverse the hugely negative impacts from the 10.1% duty hike in August 2023. From February next year cider drinkers will see further increases to the cost of the ciders that they buy in bottles and cans, either in the pub or at home.
The Chancellor announced that excise duty on draught ciders would be reduced by 1.7% to better support the pub. Whilst this is welcomed, as 2/3rds of cider value sales come from the hospitality sector, it fails to recognise the huge amount of cider sold in bottles across UK pubs. In addition, the reduction in business rate relief for the hospitality sector will result in additional pressure on the pub sector, already in significant decline. The cider industry depends on a vibrant and healthy hospitality industry.
Cider makers are businesses and the increase in employer National Insurance, alongside such a significant cut to the threshold, is a bitter pill to swallow for producers. The pressure that this will add to profitability can only result in either higher prices for cider drinkers or reduced employment. With so many cider makers operating tourist attractions, providing tours, shops and restaurants, the increase in National Living Wage again puts pressure on the cost of doing business.
Finally, cider makers are often family businesses with their roots in agriculture. Many families started making cider decades ago, alongside the family farming operation. The decision to target these hard working families through inheritance tax, ensuring that the farm must shrink with each generation, puts farming, cider apple orchards and the wonderful UK cider industry at risk.
UK Cider Makers support more than 11,500 jobs, 15,500 acres of cider apples orchards, 300 farmers, and attract more than 1 million tourists each year. The category is valued at more than £3billion and contributes £34million to agriculture in farm gate value of cider apples. It is critically important that the government now looks to work with cider makers, farmers and the hospitality sector to understand how it can reverse the worst of these impacts and encourage growth and innovation.
Mar 16, 2023
The Chancellor announced plans to change excise duty rates from August this year in his Budget Statement. Changes include:
- Alcohol excise duty will increase by RPI from 1st August – this will be a 10.1% increase.
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- Alcohol Duty Reforms (ADR) proposals will go ahead and these new rates have been applied to the ADR structure – see links for all duty rates.
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- Draught discount has been increased to give greater support to hospitality;
– Draught beer and cider moves from 5% to 9.2% discount.
– Draught wine and other fermented beverages (including flavoured ciders) moves from 20% to 23% discount.
Full details of the announcement can be found here:
Spring Budget 2023 – GOV.UK (www.gov.uk)
Print_Budget_2023.pdf (publishing.service.gov.uk)
Details of all alcohol duty rates from 1st August 2023 can be found here:
Annex A: rates and allowances – GOV.UK (www.gov.uk)
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Feb 11, 2020
In their submission to the Treasury ahead of the Spring Budget, the NACM has asked for special consideration to be given to cider. Gordon Johncox, chair of the NACM explains “Cider has been in decline since 2009 and the impacts are being felt across the industry and cider supply chain. Around 1,000 acres of cider apple orchards have been lost in the last year as the need for cider apples falls in line with the market. The pressure is being felt across the South West, Herefordshire and other cider making regions, impacting investment and innovation.” The standard cider category is now just 5.4% of the total drinks market, significantly smaller than it was a decade ago whilst in the same period changes to excise duty have resulted in the tax on cider moving closer to other categories.
“We need a 2p per pint reduction in excise duty, which will help return the cider category to growth, supporting rural employment, farming and tourism. It is also time that the broader structure for cider excise duty is reviewed. It is patently unfair that fruit ciders are treated as wine rather than cider. We are asking that a definition is put in place so that these ciders are recognised and better protected to support innovation and growth across the category.” Gordon explains. “In addition, the case for more support for small cider makers continues to grow. Currently these small scale operators represent over 90% of cider makers, but less than 3% of category volume. We are asking the Treasury to introduce a progressive cider duty that would support growth and innovation and create more jobs. We need consultation across the cider industry to ensure that this can be achieved in a way that encourages growth whilst continuing to protect the smallest cider makers who currently rely on the 70Hl duty relief”.
The NACM has explained to the Treasury that the current concerns around post Brexit impacts on the cider industry, continue to create more uncertainty for the industry, especially around export and supply chain issues Cider makers create rural jobs, invest in their communities and encourage over half a million tourists to visit each year. Gordon concludes “Cider really is a Great British success story and we ask that it is given more support to encourage growth, innovation and success. We hope that we will be raising a glass of cider to the Chancellor on 11th March”.
Feb 6, 2019
Gordon Johncox, the chair of the National Association of Cider Makers (NACM) and the chief executive of Aston Manor Cider, addressed MPs, government officials and industry figures to outline a British success story in need of support.
Gordon outlined how collaboration across the industry by cider makers of all scales is a positive feature, though the hard-pressed sector still needs support from government.
As a relatively small industry, representing the best interests of every cider maker informs all aspects of activity of the NACM. The vision of the association is that all producers can operate successfully and fairly in a competitive market, whilst continuing to support their communities, employees and apple growers.
To enable this, he called for a balanced regulatory environment for cider makers reflecting the unique circumstances of producers. In particular, MPs, Ministers and officials were urged to deliver a consistent application of regulations.
Gordon challenged the Government’s willingness to understand the specific situations of cider makers. While headlines from the Autumn budget stated that cider duty was frozen, ciders in the middle duty band received a 25% tax increase, impacting many small cider makers.
Following his speech, Gordon commented: “Cider businesses of all sizes are working hard to deliver a sustainable future for the benefit of consumers and the rural environment. The industry is a significant part of British heritage.
“We need the support of politicians to work with us to return cider to more positive results, remove red tape and the unnecessary rules that limit innovation and investment. This support can enable cider makers produce fantastic products that interest in our category.
“We work to see every cider maker flourish and grow in line with their ambitions, whilst maintaining the highest standards. We firmly believe that with our collaborative nature and how we support one another this can be achieved when we can rely on consistent and sensible legislation.
“In recent months we have seen members providing orcharding experts when others experience weather related problems, large companies have supported smaller producers to expand their packaging ranges. When something is challenging or if advice is needed, small producers will always be supported, and to me, this is why the UK cider industry is so very special.”
The Parliamentary Cider Group Reception was an opportunity to showcase the best of British cider, which is home to the largest cider market in the world. The evening was attended by cider makers from across the South West, Midlands and further afield, as well as many MPs that represent cider making regions within their constituencies.

The NACM is the UK cider industry representative body, working on behalf of large and small producers:
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