Beer and cider markets see growth
The UK market for premium lagers, beers and ciders has grown by 1.2% year on year in 2014, estimates a key note report.
Value growth and the annual increase in volume sales has been driven by the recent reductions in the level of alcohol duty paid on beer and cider products. For beer, all categories saw cuts in duty ranging between 0.75% and 6% in the years ending March 2014 and March 2015.
After two consecutive cuts in the level of beer duty, beer prices were estimated to have fallen, on average, by 1% across the country. For cider, budgetary announcements were not as favourable, with a 2% above inflation increase in duty rates imposed for the year ending March 2014, under the alcohol duty escalator policy.
For the 2014/2015 financial year, this policy was abandoned across the sector, and duty rates for cider alongside spirits were frozen. While this was a positive move for cider and other alcohol sectors, it was not until the latest budget for March 2015 that the rest of the alcohol industry, like beer, received a reduction in duty levels.
As a result of this, key note predicts stable and slight annual growth in value sales of premium lagers, beers and ciders over the next five years.
