Britain to Lower Taxes on Low-Alcohol Beer

England will lower taxes on low strength (2.8 percent or less alcohol) beer by 50 percent, which is prompting brewers to develop new recipes.

August 09, 2011

LONDON, ENGLAND - The British government will be lowering the excise tax for low-alcohol beer (2.8 percent or less alcohol) by 50-percent beginning in October, a move that is prompting brewers to begin modifying their recipes, CBC News reports.

Once the tax change takes effect, during which full-strength beer??s tax will increase by either 7.2 percent or 7.5 percent, the price for a pint of low-alcohol beer will cost nearly one dollar less than traditional ales and stouts.

Ken Johnson, who works for Marston??s Beer Company, said the country??s beer market has been changing rapidly over the past several years and that the new tax discrepancy is one to take advantage of.

"One of the growing trends in the market is for younger women to be taking up beer drinking, amongst the lighter beers, the golden ales," he said. "And younger people tend to have less disposable income."

John Keeling, head brewer for Fuller's, said to fully exploit the upcoming tax discrepancy takes more than just minor recipe tweaks.

"The problem with producing the 2.8 percent beer, if you do it on normal standard recipes, it's not going to taste of a lot," he said. "So we have to develop new recipes."

Keeling said he is using more hops and experimenting with roasted malts, and that his company plans to unveil its first 2.8 percent beer this week.

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