BBPA: no comment on Diageo rumours
The British Beer and Pub Association (BBPA) has said it won't comment on rumours that it could ask Diageo to resign over its stance on duty.
Rumours surfacing this morning suggest that the BBPA is to canvass the opinion of its members with a view to asking the drinks giant to resign or take a reduced role in the organisation.
In September, Diageo, owner of eight of the world's top 20 premium spirit brands, as well as the iconic stout Guinness and Blossom Hill wine, called for a unit of alcohol to be taxed at the same rate for all products. This argument is known as "equivalence".
Diageo said the "simplest way" to do this would be to freeze spirits duty. The controversial duty escalator — 2% above inflation — would be added to other categories until they reach the level of spirits.
The stance attracted great criticism from brewers and the pub industry a-like with JD Wetherspoon boss labelling Diageo a "bunch of morons".
Shepherd Neame boss Jonathan Neame, a prominent member of the BBPA, also called the move "rather foolish".
The BBPA favours duty increasing in line with ABV, which it says would create 29,500 jobs, mainly in pubs and hospitality.
The current system "penalises" beer, the BBPA said — alcohol in the form of beer costs 42p per unit on average, compared to 37p for vodka and 33p for cider.
BBPA chief executive Brigid Simmonds said she would not comment on the situation, which was "confidential".
