Molson Coors boss calls for cider duty hike

Molson Coors UK boss Mark Hunter has called for an increase in duty on cider at the emergency Budget next week. Cider duty was increased 13% in...

Molson Coors UK boss Mark Hunter has called for an increase in duty on cider at the emergency Budget next week.

Cider duty was increased 13% in March by former Chancellor Alastair Darling but the hike was later repealed and the Tories had promised not to reinstate the "Wurzel Tax" in their election campaign.

But Hunter said cider duty must be brought in line with beer to create a level playing field. "I'm happy to compete; all I am looking for is a level playing field when it comes to excise," Hunter told the Daily Telegraph.

"For every 0.1pc increase in the strength of beer, excise goes up by £3 for a barrel. Meanwhile cider is a flat rate of duty all the way to 7.5pc. Carling is 4pc alcohol and the excise on that is 39p. A pint of Strongbow is 4.5pc alcohol and the excise is 20p.

"So my question would be why for like-for-like products, one has half the duty rate of another. It's just incomprehensible."

He added: "Eight out of 10 pints of cider that are sold in the UK are supplied by two companies — Heineken and C&C. They're large companies that are able to compete. About 75pc of small cider manufacturers don't pay any duty because they produce less than 70 hectolitres a year."

"The Treasury would earn about £400m if there was equivalent across the two categories, all things being equal," he argues.

Hunter also said that a minimum price on alcohol would be difficult to implement but suggested a ban on below cost selling, which he defines as VAT, duty and a nominal cost of production, would be a start.

He also said there should be a ban on supermarkets advertising around the price of alcoholic drinks. He suggested price based advertising would only be allowed within 100m of the outlet.