The government's plan to target low-quality, cheap cider by introducing a minimum juice content will be a "breath of fresh air" for the industry, according to the UK's largest own-label cider supplier.
Justine Greening, economic secretary to the Treasury, announced the government would introduce secondary legislation in September to increase the tax on cheap, strong apple and pear ciders both branded and own-label.
It will do so by introducing a minimum juice content, below which cider will be taxed as made-wine, incurring a higher duty rate. Information on the new policy will be announced before parliament's summer recess starts on 29 July.
Own-label supplier Aston Manor, which produces the kind of ciders most likely to be hit by the new legislation, nevertheless welcomed the higher tax.
"It will improve the quality of the industry. It's going to affect the lower quality ciders, but to be honest they are being sold far too cheaply anyway, so to add juice to those products will make them better quality," said Glenn Asquith, sales and marketing director at Aston Manor.
The products most likely to fall foul of a definition would be the two-litre 4.2% abv bottles of own-label cider sold by the major retailers for about £1.30, he predicted. "What happens is a retailer wants a price point for a particular type of cider, so a manufacturer has to work to a price, but this [new legislation] means they work with quality in mind, rather than just price. It will be like a breath of fresh air."
The National Association of Cider Makers, backed by Strongbow maker Heineken UK, said "anything that adds a more robust definition of cider has to be a good thing".
Greening told The Grocer this week that the new definition was just the "first step" to ensuring the government was tackling problem drinking without unfairly penalising local industry, pubs and responsible drinkers.
"The wider review into the pricing and taxation of alcohol will be taking place over the summer and I welcome contributions from the industry," she added.
Justine Greening, economic secretary to the Treasury, announced the government would introduce secondary legislation in September to increase the tax on cheap, strong apple and pear ciders both branded and own-label.
It will do so by introducing a minimum juice content, below which cider will be taxed as made-wine, incurring a higher duty rate. Information on the new policy will be announced before parliament's summer recess starts on 29 July.
Own-label supplier Aston Manor, which produces the kind of ciders most likely to be hit by the new legislation, nevertheless welcomed the higher tax.
"It will improve the quality of the industry. It's going to affect the lower quality ciders, but to be honest they are being sold far too cheaply anyway, so to add juice to those products will make them better quality," said Glenn Asquith, sales and marketing director at Aston Manor.
The products most likely to fall foul of a definition would be the two-litre 4.2% abv bottles of own-label cider sold by the major retailers for about £1.30, he predicted. "What happens is a retailer wants a price point for a particular type of cider, so a manufacturer has to work to a price, but this [new legislation] means they work with quality in mind, rather than just price. It will be like a breath of fresh air."
The National Association of Cider Makers, backed by Strongbow maker Heineken UK, said "anything that adds a more robust definition of cider has to be a good thing".
Greening told The Grocer this week that the new definition was just the "first step" to ensuring the government was tackling problem drinking without unfairly penalising local industry, pubs and responsible drinkers.
"The wider review into the pricing and taxation of alcohol will be taking place over the summer and I welcome contributions from the industry," she added.
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