Cider giants weigh into tax debate

The giants of the cider industry used a meeting at the House of Commons last night (Tuesday, June 9) to weigh into the duty debate.

At the annual Parliamentary Cider Group (PCG) meeting and reception, speakers told MPs that the government's 'duty escalator' commitment to raising alcohol tax at two per cent above the rate of inflation for the next three years was of grave concern to cider producers.

Fenella Tyler, chairwoman of the National Association of Cider Makers, and head of cider communication for Bulmers, said: "There is a real risk that if duty is not addressed - and reduced - we will see a decline in sales and a reduction in the contribution the cider industry makes to the Treasury.

"Plus there would be a severe impact in terms of employment within the industry and a reduced level of investment we can make into the rural economy."

She denied cider producers were looking for a "government bail out" but for "government policy that allows us to continue to grow".

Bill Wiggin MP, chairman of the PCG, added: "I am sure that ministers will do their best to support cider during this difficult time and help the industry through this downturn."

The cider industry has a reputation for campaigning on tax more effectively than the beer industry, and cider is a category faring relatively well - its value in the on-trade has grown two per cent year on year, according to Nielsen figures.