spirits - Neighbourhood Retailer https://neighbourhoodretailer.com The authoritative voice of the grocery industry in Northern Ireland Thu, 11 Aug 2022 10:50:04 +0000 en-US hourly 1 https://wordpress.org/?v=6.5.2 https://neighbourhoodretailer.com/wp-content/uploads/2020/05/cropped-NR-SIte-Icon-2-32x32.png spirits - Neighbourhood Retailer https://neighbourhoodretailer.com 32 32 178129390 Government warned that banning cheap alcohol will send shoppers north https://neighbourhoodretailer.com/government-warned-that-banning-cheap-alcohol-will-send-shoppers-north/ Thu, 11 Aug 2022 10:44:38 +0000 https://neighbourhoodretailer.com/?p=24505 The Irish government is being warned that new laws banning the sale of cheap alcohol could reduce tax returns because people are heading to Northern

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The government has been advised that the introduction earlier this year of minimum unit pricing on alcohol could ultimately lead to less tax due to people shopping across the border.

A Department of Finance Tax Strategy Group paper on excise duty said it was too early to gauge the impact of the introduction of minimum unit pricing.

But it warned: “It is clear, however, its introduction has resulted in price differentials on alcohol products across the border which might lead to an increase in cross-border trade, undermining the tax take from alcohol sales.”

The guidance came among a range of options on tax and welfare for ministers to consider as they prepare for next month’s Budget.

This includes proposals to increase all welfare rates by €15 and introduce tax cuts for two million taxpayers.

The government is not bound by the recommendations but Irish Finance Minister Paschal Donohoe said consideration will be given to all the proposals outlined by his officials.

The paper on excise notes that the Drinks Industry Group Ireland (DIGI) and the National Off-Licence Association have called in their pre-budget submissions for a 7.5% reduction in alcohol excise in Budget 2023 with a further 7.5% reduction in 2024.

“It considers that this will help the drinks and hospitality sector to rebuild commercial activity in all areas of the country and to recover employment,” it said.

The document also notes that the Republic has the highest level of excise duty on wine in the EU and the second highest on beer and spirits.

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Minimum pricing on alcohol in ROI could impact border businesses https://neighbourhoodretailer.com/19403-2/ Tue, 04 Jan 2022 09:56:11 +0000 https://neighbourhoodretailer.com/?p=19403 The introduction of minimum pricing on alcohol has come into effect across Ireland. The law will mainly affect alcohol sold in off licences, shops and

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The law will mainly affect alcohol sold in off licences, shops and supermarkets and means a standard bottle of win cannot be sold for less than €7.40 and a can of beer for less than €1.70.
Spirits like gin or vodka with 40% alcohol content cannot be sold for less than €20.70 and a 700ml bottle of whiskey for less than €22.
The new law is expected to lead to an upsurge of cross-border sales at off-licences and supermarkets in Northern Ireland.
The Stormont Executive has been urged to introduce similar legislation, but work on a public consultation on the issue has not been completed.
Minister for Health Stephen Donnelly and Minister of State with responsibility for Public Health, Well Being and the National Drugs Strategy Frank Feighan have welcomed the move, saying Ireland is now one of only a small number of countries in the world to introduce minimum pricing.
Scotland was the first in Europe to introduce it in 2018, followed by Wales in 2020.
Other countries and territories that already have a legal minimum price include the Russian Federation and regions in Australia and Canada.
A minimum unit price of 10c per gram of alcohol is provided for in Section 11 of the Public Health (Alcohol) Act 2018.
Minimum unit pricing will set a floor price beneath which alcohol cannot legally be sold and will target products that are cheap relative to their strength. The minimum price is determined by and is directly proportionate to the amount of pure alcohol in the drink, the statement added.
Minister Donnelly said: “This measure is designed to reduce serious illness and death from alcohol consumption and to reduce the pressure on our health services from alcohol related conditions. It worked in Scotland and I look forward to it working here.”
Minister Feighan said: “We are taking this action to ensure that cheap strong alcohol is not available to children and young people at ‘pocket money’ prices and to help those who drink to harmful levels to reduce their intake.
“I am proud that Ireland is among the first countries in the world to introduce this measure and to take real action to help those who need it the most.”

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Supply chain problems could result in a shortage of wine and spirits at Christmas, a drinks trade body warns https://neighbourhoodretailer.com/supply-chain-problems-could-result-in-a-shortage-of-wine-and-spirits-at-christmas-a-drinks-trade-body-warns/ Thu, 25 Nov 2021 11:36:55 +0000 https://neighbourhoodretailer.com/?p=19124 The UK could face wine and spirit shortages this Christmas, a drinks trade body has warned. In a letter to Transport Secretary Grant Shapps, the

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The UK could face wine and spirit shortages this Christmas, a drinks trade body has warned.

In a letter to Transport Secretary Grant Shapps, the Wine and Spirit Trade Association (WSTA) said rising costs and supply chain chaos have held up deliveries, with imports now taking up to five times longer than a year ago.

The government said: “We do not expect disruption to the supply of alcohol this Christmas”.

The letter was co-signed by 49 firms, including Pernod Ricard, Moët Hennessy and the Wine Society.

It said the sector has been badly affected by the HGV driver shortage crisis, which the industry has blamed on factors including Covid and Brexit.

The letter said drinks businesses were still struggling, and further action was needed, particularly in the run up to Christmas, a critical trading period for the sector.

“Unless urgent action is taken, we will fall deeper into delivery chaos,” it added.

“Businesses like ours previously able to fulfil orders in two to three days now have to operate on a day one for day fifteen basis,” the letter said.

In addition, businesses are reporting increased costs of around 7% – and often more – by freight forwarders to account for driver retention.

“This is particularly a concern for SMEs who are unable to compete with large businesses to attract drivers,” the letter said.

Unpredictable

It said drivers and vehicles were “increasingly unpredictable” in their arrival times, which meant goods being either not ready or left waiting for collection.

Being unable to fulfil orders on time would mean lost business and could ultimately lead to increased costs for consumers.

The WSTA called for the temporary visa scheme for HGV drivers to be extended for a year and asked the government to act to help smooth congested freight routes from ports, and provide more regular updates on how many HGV driver licences are being processed by the Driver and Vehicle Licensing Agency.

A government spokesperson said: “The UK has a strong food supply chain and we do not expect disruption to the supply of alcohol this Christmas.

“The government acted quickly to tackle the challenges to our supply chains, which were brought on by global pressures including the pandemic and the international shortage of HGV drivers.”

It has invested £32.5m in roadside facilities for hauliers, put £17m into creating new HGV skills bootcamps, and launched a review of training, the spokesperson said.

“These measures are working, cutting the backlog through a huge increase in vocational licences issued and HGV tests conducted compared to before the pandemic, and there is now spare capacity in the testing system.”

The warning from the drinks industry comes as food distributors warned MPs that consumers could face less food choice this Christmas because of supply chain issues.

Shane Brennan, head of the Cold Chain Federation, said suppliers were scaling back plans to ensure they can deliver.

The Cold Chain Federation represents firms involved in the storage and distribution of chilled and frozen products, including food.

“It’s about reducing the amount of goods you’re expected to put on the shelves,” Mr Brennan told the Transport Select Committee inquiry into the road freight supply chain.

“We are very good at piling high and selling it cheap at Christmas time,” he said.

“What we’re having to do is strategically scale that back, in order to basically meet the promise that there will be the stuff you expect to see on the shelves, but not necessarily all the extras.”

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Prosecco and pint taxes to fall, red wine to rise https://neighbourhoodretailer.com/prosecco-and-pint-taxes-to-fall-red-wine-to-rise/ Wed, 27 Oct 2021 15:22:37 +0000 https://neighbourhoodretailer.com/?p=18853 Taxes on sparkling wine, draught beer and cider are to be cut, but will rise for stronger drinks such as red wine following the Budget’s

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Taxes on sparkling wine, draught beer and cider are to be cut, but will rise for stronger drinks such as red wine following the Budget’s shake-up of alcohol duty.

The new system, due to start in 2023, will mean higher duty for stronger alcohol, the chancellor said.

The duty premium on sparkling wines will end and the duty on draught beer and cider served in pubs will be cut.

Chancellor Rishi Sunak announced that a planned increase in duty on spirits, wine, cider and beer  has been cancelled.

“To radically simplify the system, we are slashing the number of main duty rates from 15 to just six,” the chancellor said.

“Our new system will be designed around a common-sense principle: the stronger the drink, the higher the rate. This means that some drinks, like stronger red wines, fortified wines, or high-strength ‘white ciders’ will see a small increase in their rates because they are currently undertaxed given their strength.”

Mr Sunak said many lower alcohol drinks were “currently overtaxed”, adding: “Rose, fruit ciders, liqueurs, lower strength beers and wines – today’s changes mean they will pay less.”

In relation to sparkling wines, Mr Sunak said: “I’m going to end the irrational duty premium of 28% that they currently pay. Sparkling wines – wherever they are produced – will now pay the same duty as still wines of equivalent strength.”

In a move to help struggling pubs, Mr Sunak announced a new lower rate of duty for draught drinks, which he said would cut the cost of a pint by about three pence.

He said the “draught relief will cut duty by 5%” and “will apply to drinks served from draught containers over 40 litres”.

The chancellor said this would particularly benefit community pubs “who do 75% of their trade on draught”.

He also announced proposals for a new “small producer relief” to include small cidermakers and other producers making alcoholic drinks of less than 8.5% alcohol by volume (ABV).

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