It’s the kind of mystery that would baffle even Hercule Poirot. What becomes of the 28,000 lorry loads of beer that set off down the M2 every year for export to Europe but disappear into thin air?

About 450 million litres of British-brewed beer are sold for export to the near continent, despite demand for these products being only 180 million litres The government believes the surplus is finding its way on to the illicit market, at a cost to the taxpayer of £500m in lost duty. One in 10 beers in the UK, it says, was sold in stores illegally in 2009/10, 25% up on the previous year.

This illicit trade severely erodes sales of the highest-volume UK-produced lager brands, while most other categories remain in growth. This sustained attack on the legitimate alcohol supply chain is the single-biggest barrier to growth in the wholesale sector and its ability to recruit and retain staff. It’s a problem for retailers, too, as the 30 Brighton store owners found in possession of suspected duty-avoided stock this year discovered.

The distribution chain stands united with the government in condemnation of the criminals. Where views differ is in how we should resolve the issue.

Since 2009, HMRC has had stronger powers and extra resources for enforcement, and, following intense lobbying by FWD, the government has agreed to consider new legislative measures to tackle alcohol fraud, via its current consultation.

A recent National Audit Office report, again instigated by FWD, found HMRC has had “no tangible success” in working with industry to tackle the issue since 2009. I support Treasury minster Chloe Smith’s belief that we must now all work towards stopping the fraud at source.

That’s why FWD members are backing HMRC’s recommendation for fiscal marks to be included in the design of bottles and cans on which UK duty has been paid. Far from costing a penny a pint, as brewing lobby group BBPA claims, these need be no more expensive to produce than the existing plethora of SKUs with their pricemarks, competitions or football-themed special editions.

The brewers already manufacture, store and distribute bespoke variants for different routes to market and HMRC’s proposal would simply require them to add one more, the unmarked can or bottle for export. Some 95% of UK-brewed beer is consumed in the UK, so it is not a big ask.

Fiscal marks would also protect retailers. They would shun major products without the 3cm duty-paid mark, aware that if HMRC or Trading Standards found those on their shelves, their licence would be at risk.

As for wholesalers, FWD has put forward the idea of a registration scheme, currently the only part of the supply chain that can operate unlicensed, and while this self-imposed burden will add cost and complexity to our members’ operations, they believe it is a price worth paying.

Our request to our brewing supply chain partners is that they make a similar commitment. After all, in the words of Chancellor George Osborne, we are all in this together.

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