| Alcohol type | Rate per hectolitre per cent of alcohol in the beer |
|---|---|
| Beer - General Beer Duty | £18.37 |
| Beer - high strength: Exceeding 7.5% abv - in addition to the General Beer Duty | £5.48 |
| Beer - lower strength: Exceeding 1.2% - not exceeding 2.8% abv | £8.10 |
| Alcohol type | Rate per hectolitre of product |
|---|---|
| Still cider and perry: Exceeding 1.2% - not exceeding 7.5% abv | £38.87 |
| Still cider and perry: Exceeding 7.5% - less than 8.5% abv | £58.75 |
| Sparkling cider and perry: Exceeding 1.2% - not exceeding 5.5% abv | £38.87 |
| Sparkling cider and perry: Exceeding 5.5% - less than 8.5% abv | £268.99 |
Tony
You have forgotten to factor in the 6.5 x multiplier for UK beer duty. Beer at 6.5%ABV pays £119.41 per hectolitre (100 litres) vs cider of the same strength at £38.87.
By reason of the EU “Structures Directive” (something we have now put at risk since 24/06/16), beer duty goes up in steps of 0.1%ABV while cider is dutied in bands – like wine – but cider’s rate (as I have often pointed out to warn those who might unwittingly doctor cider and so convert it into made wine) is lower than either wine or beer. Please don’t upset the brewers by claiming that cider duty is higher!!!
Re pricing, I think you will find as a general rule that craft cider at retail is already priced above mainstream cider. Sparkling cider is often priced at £12 - £15 per 75cl bottle but then the duty on sparkling cider is equal to sparkling wine duty – when <8.5%ABV.
Nick
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We retail ours in 500ml at £3.50 - nobody has ever queried the price even when we've done a stall next to a brewery selling same size bottles for £2.50. Could we charge more? Maybe.
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This will nicely muddy the waters for those trying to earn a living, £3.75 for 330ml is pure fantasy.
Tim in Dorset
Duncan. I soon realised as with most things for sale the middle man takes all the profits. To combat this we have setup a small group.of craft brewers and cider makers. The plan is to rent small properties to organise pop up craft events. At least this way we can sell at retail prices
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I would duck and never surface again if I was you, do that and I would give up making cider tomorrow morning.
Tim in Dorset
From: 'Tony Lovering' via Cider Workshop [mailto:cider-w...@googlegroups.com]
Sent: 03 January 2017 16:54
To: Cider Workshop
Subject: Re: [Cider Workshop] Re: Cider prices UK
Hi
One of the problem is (and this isnt a dig at the small producer) that there are a lot of cider makers who's primary income doesn't come from making cider and can afford to sell at the artificially low prices being happy to just break even. Although this may well increase the diversity of whats on offer it does play into the hands of the big producers
Denis France www.handmadecider.co.uk 07590 264804 Company. No. 07241330
White Label – Champion Farmhouse Cider, Bath & West Show 2015.
Spring Surprise - Cider of the Festival Chippenham Camra Beer Festival 2015 & 2014
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I think prices are sensitive to a number of things: how much competition there is in the area, whether there are any large producers incumbent, duty etc. etc.
If you want to know what I ‘believe’, then there should be a premium for a premium product. But a product made from 100% juice isn’t necessarily a premium product (sorry, I am using the word premium to mean high quality… not the same as the idiotic marketeers in the industry who probably think premium simply means ‘as close to sweetened water as possible’)
In the real world, of course, there is a lot of work to do on both the resellers and the punters before they see cider as anything but an alternative to beer. This may be a pessimistic view, but (again, thanks to those who think they do marketing) a high value cider probably contains some strawberries or eau de old socks. And much be sweet.
So, pricing is always going to be tricky depending on where you operate and who you are in competition with. And its not a fair or level playing field.
As for the exemption? Well, it is a barrier to business as many who have reached it will attest to. The jump from 7000 that is needed to make it viable once duty is accounted for is quite the leap. However, for those of us who do not depend on cider as a main income there is less incentive to jump over it… hence a lot of smaller semi professional/hobby producers in the UK. Would I get rid of it? No. Was it simply set because (probably realistically) those who collected duty didn’t stand a hope of getting it in the first place? I would defer to older and wiser peopleJ
The issue of how to price a cider will always be contentious!
Jez
Tony,
You may want to check your maths on the duty… You may make the same amount as ‘income’ but you would be liable for over £3100 in duty. It isn’t the end of the world, but by sticking to 7000 you avoid that entirely.
And not entirely sure what you mean by no such thing as made wine either – what about country wines?
Jez
From: 'Tony Lovering' via Cider Workshop [mailto:cider-w...@googlegroups.com]
Sent: 04 January 2017 15:32
To: Cider Workshop <cider-w...@googlegroups.com>
Subject: Re: [Cider Workshop] Re: Cider prices UK
If you are selling to pubs at £45 per 20ltr you will make the same income from 8,000ltr with duty as you would with 7,000 without. Not much of a jump.If you want to make the same profit it might be..lol
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I think you will find the exemption does apply to sparkling cider, unless I am missing something.
From notice 162.
3.10 Can I claim exemption from registration
You may claim exemption if:
Vince
From: 'Tony Lovering' via Cider Workshop [mailto:cider-w...@googlegroups.com]
Sent: 04 January 2017 15:32
To: Cider Workshop
Subject: Re: [Cider Workshop] Re: Cider prices UK
If you are selling to pubs at £45 per 20ltr you will make the same income from 8,000ltr with duty as you would with 7,000 without. Not much of a jump.If you want to make the same profit it might be..lol
FYI the exemption doesn't apply to sparkling cider or flavored cider, not that there is such a thing as its Made Wine.
Cheers
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As long as it is crown capped, put it in a champagne bottle with cork and wire and you pay duty.
Tim in Dorset
I was under the impression that the duty rate may change if it has a mushroom cork/cage arrangement but it still falls under the 7,000L exemption.
All the info should be in HMRC notice 162.
5.4 When is cider liable to the sparkling rates of duty
Cider is liable to the sparkling rates of duty if it has an actual alcoholic strength by volume exceeding 5.5% but less than 8.5% and:
Vince
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Nice. I can just imagine loads of people running off to Tesco this afternoon and clearing the shelves of food colouring. Mind you, I suspect a fair few already use it on the quiet.
Tim
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From: cider-workshop@googlegroups.com [mailto:cider-workshop@googlegroups.com] On Behalf Of Ray Blockley
Sent: 13 January 2017 12:08
To: Cider Workshop
Subject: Re: [Cider Workshop] Re: Cider prices UK
Just to add a bit of interest....
Back after 4 weeks in Spain & exploring lots of excellent & not so excellent Sidra, & so catching up.
a) Certain "important" CAMRA members who are also cider producers are against cider being priced anything more than basic beer. They sneer at those who feel that 100% whole juice craft made cider & perry (small "c") should be priced accordingly for the true premium quality product that it is. However - the same people are happy that watered-down low ABV fast-fermented "flavoured ciders" should be priced the same as high ABV whole juice quality cider & perry.... I cannot work out their reasoning!
b) This article is an interesting read for those who also follow the trends in (overpriced?) "Craft Beers" & similar "innovations". Could you expect to find Blue cider / Bright Green perry on offer soon? I fear the clock is ticking...
http://www.thelocal.es/20170112/red-white-but-not-blue-spain-bans-wine-because-its-the-wrong-colour
Ray.
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