Tag: British Beer and Pub Association

Less booze than bread!

British Beer and Pub Association urges Government to change description rules as supermarket staples can contain more alcohol than no-alcohol beers

  • At 0.05% UK non-alcoholic thresholds are most stringent in the world 
  • Restrictions mean supermarket staples such as yoghurt and bread can contain more alcohol than No alcohol beer
  • BBPA calls on Government to change descriptions to support public health goals and so the public have a greater variety of No alcohol beers

The BBPA is calling for a change in UK No/ Low definitions considering many supermarket staples contain more alcohol than No alcohol beer and current rules penalise British brewers.  

The leading trade body says a slight change in the threshold to 0.5% ABV would lead to brewers being able to create many more No/ Low alcohol beers, which would help people choose moderation if they want to. 

Currently, ‘alcohol free’ beer in the UK must be 0.05% ABV or below, whereas non-alcoholic beer from many other European nations and international markets is allowed up to 0.5% ABV. 

Brewers across the UK are investing a huge amount of time and money in creating innovative products, and 86% of pubs now stock No/ Low options. On top of this, 8% of pubs are serving a No/ Low option on draught, proving how the industry is helping public health goals and helping pubs be even more inclusive. 

However, given the lack of a level playing field, British brewers are effectively penalised – even in the UK – as they cannot compete with European brewers who have greater freedom to make No/ Low beer. 

In the UK an ‘alcohol free’ beer must be below 0.05% ABV whereas non-alcoholic beer from many other EU and international markets adhere to a slightly higher threshold of 0.5% ABV. 

With the sector forced to work within such a restrictive threshold, the BBPA has pointed out that many products contain more alcohol than a 0.05% beer. 

This was acknowledged in the previous Government’s evidence review published alongside their consultation on No/ Low definitions. The then Government recognised that foods such as bread, fruit juice and yoghurt can all contain a level of alcohol that is undeclared and does not need to be labelled or indeed is a cause for concern. 

Specifically, their evidence found levels of up to 1.2g of alcohol per 100g of bread, and 0.77g of alcohol per litre of fruit juice. The Government also highlighted that an individual would need to drink 8 pints of 0.5% ABV in an hour to reach the same blood alcohol content as if they consumed one 4% ABV pint of beer. 

This highlights the challenges and unfairness faced by UK brewers. 

Emma McClarkin, CEO of the BBPA said: “It couldn’t be clearer that British brewers want to create more No/ Low options and cater to booming demand but are at a distinct disadvantage when compared to international neighbours. 

“Our sector is committed to tackling harmful alcohol consumption, proven by how brewers are creating more No/ Low products, and more pubs are stocking these products. 

“Changing current highly restrictive ABV thresholds to match international neighbours will help brewers create more products and give consumers more options when choosing moderation, all of which will help public health goals.” 

From a public health perspective there is clear and robust evidence that no and low alcohol drinks are effective in supporting those seeking to moderate or reduce their alcohol consumption.     

The No/ Low category is coming off a recording breaking 2024 and Christmas period with up to 140 million pints expected to have been drunk last year. However, there remains huge scope for further growth. 

With this in mind, it is vital that the No/ Low category is supported so that it can continue to grow and be an option those who are choosing moderation, the BBPA said. 

Beer and Pubs pour millions into Scotland’s economy but government support urgently needed, says BBPA

  • Scotland’s beer and pub sector contributed more than £2.3 billion in GVA and generated more than £1.4 billion in tax, new British Beer and Pub Association research reveals   
  • Despite huge contribution to country’s finances and communities, taxes and rising business costs mean pubs make just 12p a pint    
  • Industry may have to bear yet more punishing burdens and restrictions  
  • BBPA calls on the Government to be “business friendly” and support Great British beer and pubs to boost economic growth   

Scotland’s beer and pub sector poured more than £2.3 billion in Gross Value Added (GVA) into the economy and contributed more than £1.4 billion in tax in just one year, according to new research by the trade body.   

As a whole, Britain’s beer and pub sector poured more than £34.3 billion in Gross Value Added (GVA) into the economy and contributed more than £17.4 billion in tax in just one year, according to new research by the trade body.   

Latest figures from 2024 Oxford Economics research show GVA contributions were up from the previous contribution of £1.7 billion. 

 These figures demonstrate the sector’s important economic contribution to both their region and the wider national economy, the British Beer and Pub Association (BBPA) said.    

But despite this, pubs make an average of just 12p on every pint of beer once taxes and costs have been deducted.     

Not only that, but the industry is also facing multiple burdens and restrictions in the form of proposed eyewatering packaging costs and a potential beer garden smoking ban.   

Now the BBPA is calling for a reduction in soaring costs of doing business. It warns the industry needs government support from the Budget to make sure the sector can continue to contribute to the economy and boost the country’s finances.   

The BBPA wants to see a cut in beer duty, business rates reform, and a pledge to keep the 75% business rates relief to ensure that pubs can survive.   

Emma McClarkin, CEO of the BBPA, said: “The Scotland’s sector’s growth will underpin economic growth, which is why if the Government truly is business-friendly, it must recognise that pubs and brewers are shouldering multiple taxes and costs that are squashing growth and could lead to businesses failing.    

“There is no more meat on the bone to cut, which is why it we are calling on the Government reduces the cost of doing business so we can continue to make a massive contribution to the public purse.   

“It is imperative there is a reform in the business rates system which currently penalises bricks and mortar businesses like pubs which pay five times more than their share of turnover.   

“Until then, the vital 75% business rates relief due must be maintained for pubs so that one of the core cost components of doing business can be controlled. In addition, we urgently need to see a cut in beer duty.    

“Our industry is an economic bellwether and when pubs and brewers suffer, the economy suffers. If the Government wants to succeed in its growth mission, it needs to support our beer and pubs which play such a vital role in our communities.”  

The sector is also facing potential eyewatering EPR recycling costs next year – set to be among the highest in Europe – plus increases in energy prices. The trade body has warned that this could lead some brewers to make heartbreaking decisions about whether they can keep making their beer.       

Not only that, but a proposed smoking ban in beer gardens would have a devastating impact on many pubs and affect their viability as businesses. The BBPA is urging Government to reconsider this misguided restriction.  

The industry is one for the most heavily taxed business sectors per pound of turnover in the UK with tax making up 40% of UK brewing turnover and £1 in every £3 spent in pubs.   

Use the power of the pub to level up, report urges

Failure to support the nation’s pubs return from lockdown risks imperilling the government’s levelling up agenda for economic and social renewal, the think-tank Localis has warned.

In a report entitled ‘The Power of Pubs – protecting social infrastructure and laying the groundwork for levelling up’ Localis argues it is vital that the lockdown roadmap is not allowed to slip back further for pubs, and that the commitment to end all trading restrictions by 21 June must be delivered to return all pubs to viable trading.

Without such assurances and medium-term support to help place the pub sector at the foundations of a strong recovery, the authors warned local economies and community resilience in left-behind parts of the country – including ‘blue wall’ former industrial heartlands, rural and coastal areas – would be particularly hit.

Among key recommendations, the report authors urged central government to further reduce the tax burden on the pub sector to aid the recovery and called for an extension to the Business and Planning Act 2020.

Local councils should be directed to help pubs by issuing licence fee refunds – paid for by the Treasury – for the six months to June 2021, through business support grants, the study advised.

Additionally, where premises have been put to new community purposes during the pandemic, councils should offer a diversification grant to pubs looking to retain or expand the services they provided during lockdown.

Localis chief executive, Jonathan Werran, said: “The case for treating Britain’s pubs with fair consideration in exiting lockdown measures is, at core, as simple as it is heartfelt. Where there’s a pub, there’s a community.

“As one of the biggest contributors to the UK economy, the sector has a vital role to play in the recovery and levelling up journey of the country as well as in maintaining community cohesion and social resilience well beyond the pandemic.”

Emma McClarkin, chief executive, British Beer and Pub Association, said: “The Pandemic has fractured our communities economic environment and frayed our social ties.

“The pub is a powerful embodiment and symbol of both, woven into the fabric of our society and it is one we need to support and strengthen as we rebuild our trade as well as reconnect our communities.”