The owners of an award-winning family-run cidery in Warwickshire have welcomed the Budget’s Alcohol Duty reform which they claim will bolster the growth of their business post-pandemic.
Jolyon Olivier, who runs Napton Cidery, say the Chancellor’s new measures around duty bands for alcohol will save their business tens of thousands of pounds a year.
The changes, which The Campaign For Real Ale have hailed as game-changing for the industry, will see a potential 50 per cent cut in duty on draught and fruit ciders from 2022.
In a further boost, the cancellation of last week’s planned increase in spirits duty was also announced as well as a one-year temporary rate relief for retail, hospitality and leisure properties.
Chancellor Rishi Sunak’s radical simplification of the duty system reduces the main rates as well as taxing products in proportion to their alcohol content.
He said in his Budget speech last Wednesday it was ’the biggest cut to cider duty since 1923 and the biggest cut to fruit ciders in a generation.’
Jolyon Olivier, who established his cidery in Napton-on-the-Hill six years ago with wife Charlotte, said they were determined to pass on the cost savings to their customers.
“This is great news after a challenging couple of years in the hospitality industry.
"We are looking at a potential 50 per cent reduction in all cider duty currently. This alone could save us over £30k per year,” he said.
“The reduction in fruit cider duty which is currently 92p per litre, is hugely positive ahead of the launch of our No5 recipe next May as the cost will have massively reduced which we can then pass onto our local customers.
“On another note our Whiskey cask cider is currently classed as £2.97 per litre which I’m hoping will also be reduced. It would also enable us to release some more sparkling charmat style cider in cork and muzzle too without paying a similar duty rate.”
He added: “I personally feel this next year will see cider really grow with popularity.
"Reducing the cost of duty will certainly help smaller cider makers bridge the gap. The current system is 7,000 litres duty free to 100 per cent duty for every litre, which isn’t a great incentive to produce enough cider to make a profit.”