06/07/2023
Dear customer,
We would like to update you on a very important change this Government will introduce on the 1st of August 2023. It is making sweeping changes to how Excise and Duty is charged on alcoholic beverages, including beer.
In the past, duty was charged:
- depending on the strength of the beer (in abv)
- whether the beer was below or above 7.5% abv (regardless of packaging)
- the size of the producer (in total production of beer in Hectolitres per annum).
This included imported beers and our suppliers would list the size of the foreign breweries on all export documentation.
This will change to the following:
- Duty charged will still depend on the strength of the beer (in abv) but,
- Beer below 8.4% will have one rate. Beer of 8.5% and above will have one higher rate of duty and will increase in duty.
- the size of the brewery is now measured in the amount of pure alcohol produced over all beers produced in the previous year, in Hectolitres.
How will this affect Beautiful Beers and the imported beers?
As we have to declare all imported beers to Customs & Excise, as of the 1st of August we will have to apply new calculations as to how much duty we have to pay per imported beer. VAT is charged on top of the cost of the beer including duty, which will increase the additional cost even further.
This means that:
- Beers with an abv of 3.5% to 7.5% will see a duty increase of around 10% plus vat, except for draught beers.
- Beers with an abv of between 7.5% and 8.4% will see a duty reduction of around 12% plus vat
- Beers with an abv of 8.5% and above will see an increase of around 20% plus vat, including draught beers.
- Breweries in the EU are not certified by their country's Customs & Excise on the amount of pure alcohol they produce, but on the total annual production of beer (regardless of strength). Therefore we can no longer claim the previous 50% small producers relief on beers produced by the breweries that produced less than 5000Hl of beer per year
- Therefore, beers from small breweries will see an increase in duty of between 60 and 70% plus vat; bottles as well as draught beer.
So, during August and September 2023, there will be a gradual increase in the price of our low abv beers (3.5% to 8.4%) on average by 5%.
Beers of 8.5% abv and higher will see a gradual price increase of around 10%. The beers from smaller breweries, such as Struise, Brunehaut, Orval, Rochefort, Troubadour, Blaugies, Fantome, Cantillon, La Rulles etc. will see a more drastic price increase of between 35 to 70%.
Draught beers below 8.5% abv are not affected and duty rates will remain the same. There is no reduction in duty compared to previous rates. Only a reduction from 1st August rate increase.
Needless to say, there are no benefits to us, as a company, selling the beers as we have to spend many hours adjusting all our prices, printing new tickets, and making changes to our online pricing.
This will affect us, as a business and our business model, quite drastically and we closely monitor its effect on our business and the buying habits of the general public. European beers and especially Belgian beers remain hugely popular and we have seen an increase in sales since the Covid years, however, this may have a detrimental effect on the quantity and frequency customers will buy foreign beers. We will keep you informed on developments.
With kind regards,
René van den Oort
Director
Beautiful Beers East Anglia (UK) Ltd.