Danish multinational brewer Carlsberg is making its beer weaker to ahead of new alcohol duty to cut costs.
According to a latest report, the Copenhagen-headquartered brewer is reducing the strength of its Danish Pilsner from 3.8 per cent alcohol by volume (abv) to 3.4 per cent abv. The move makes Carlsberg the latest alcohol brand to reduce its ABV, a practice coined as ‘Drinkflation’ – when companies cut the alcohol content of their products but prices rise or stay the same.
Slashing the strength of its beer below 3.5 per cent will allow Carlsberg to take advantage of a new, lower tax rate for weaker drinks when new alcohol duty comes into effect from Aug 1. Currently, all beers above 2.8 per cent in strength pay a ‘general’ rate. However under the new system beers 3.4 per cent or less in strength will have to pay £9.27 per litre of alcohol in the product, compared to £21.01 for beers between 3.5 per cent and 8.5 per cent.
“In line with the Government’s Alcohol Duty Reforms, and as policy makers intended, reducing the abv of Carlsberg Danish Pilsner enables us to invest in innovation and in our portfolio of much-loved lagers and ales – while supporting public health by removing c.56 million units of alcohol from the UK market annually," a spokesman for the brewer said.
“We did extensive consumer research, and we are confident our new brew delivers everything beer drinkers have come to expect from our well-balanced Danish Pilsner – crisp and refreshing, with distinct hop aroma – just crafted to contain a little less alcohol.”
It was reported earlier that Fosters, Spitfire, Old Speckled Hen, and Bishop’s Finger have cut the alcohol content of their beers as a way to save on tax.
Foster’s, which is owned by Dutch brewing giant Heineken, was reduced from 4 per cent to 3.7 per cent ABV this year. The change has saved Heineken 3p of tax per can. Spitfire was reduced from 4.5 per cent to 4.2 per cent by its owner Shepherd Neame while Old Speckled Hen, owned by Suffolk-based Greene King, fell from 5 per cent to 4.8 per cent saving 2p per bottle.
Meanwhile, Wine and Spirit Trade Association (WSTA) has already called on the government to delay the duty reform move with fears that mass action could occur as drinks businesses look to save money.
This morning, the chief executive, Miles Beale has responded to the Carlsberg story on social media, pointing out that it is not as easy for spirits and wine brands to cut ABV and save costs as breweries can do.
