A major UK brewer is to reduce the alcoholic strength of its beer from Tuesday because of new Government rules. The change in Sol beer brewed by Heineken will mean less duty is paid on the brand, as UK tax rules have changed.
The strength of the beer, first brewed in Mexico then acquired by Heineken in 2010, will be reduced from 4.2% to 3.4%. Production of the lower-strength beer will start on Tuesday, and it will then be shipped from the factory in the Netherlands to pubs and shops in the UK.
The change will mean the beer can be sold at a lower price, as recent rules mean you pay less duty on beer that has an ABV under 3.4%. Heineken is the latest brewer to make the move
Last year, Asahi cut the strength of Dark Star Brewing Co’s Hophead to 3.4% ABV, while Stella Artois, Foster’s, Carlsberg, Spitfire, Old Speckled Hen and Bishops Finger have also all been reduced in strength, according to The Sun.
The average pint of a price at the bar has now hit £5.08 and brewers are keen to find ways to make drink more affordable. In London, a pint can set you back £6.16.
Heineken has warned that changes to rules on packaging coming into force this year will lead to significant cost increases. Manufacturers will become responsible for the total cost of ensuring packaging materials are recycled.
A Heineken spokesperson said: “As ever, we continue to make considerable effort across the business to deliver cost savings and drive efficiencies to keep price increases to a minimum, and reduce the impact of inflation on our customers.”
Prices are also set to go up in pubs and shops in April when all employers have to pay more national insurance—a change announced last October. Some pubs have said that could push the cost of drinks up by another 20p.
Simon Dodd, chief executive of Young’s, said: “We’ll mitigate as much as we can of the NI contribution – we’ll do that through efficiency, we’ll do that through investing in our pubs.But there will be some price passed on to the consumer.”