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panic buy real cider!


5co77ie

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The EU are trying ot get all our lovely small scrumpy producers shut down by sending them out of business:

http://www.ft.com/cms/s/0/1fb7c4be-bdc5-11e4-9d09-00144feab7de.html#axzz3TKYvmOw8

I've told the wife to go out and panic buy as much as she can!

Four out of five British cider makers face a rise in costs after the European Commission demanded that the UK stop its duty exemption for small-time producers of scrumpy and perry.

Cider makers in the UK who produce less than 70 hectolitres — roughly 12,000 pints — do not have to pay excise duty. About 80 per cent of Britain’s 480 cider makers fall into this category.

But the commission formally requested on Thursday that the UK change its excise duty, to ensure that small cider makers pay tax, or face being taken to the European Court of Justice.

A Treasury spokesperson said: “The government’s support for small cider makers has helped create a diverse and vibrant market, improving consumer choice and creating jobs. While we will study the commission’s arguments carefully, our support for this industry will continue.”

EU member states must levy at least some duty on all alcoholic drinks with no exceptions, according to European law. One commission official said: “Excise duty is about unanimity: you can’t have one country having exemptions and not the others.”

An end to the duty exemption would hit hobbyists, and people for whom cider production is a side-business, harder than commercial cider makers who, in general, do not qualify for it. Unless it is premium, cider sells for between £5 and £6 a gallon, meaning that those affected have revenues of up to £9,000 a year, according to Simon Russell, the spokesperson for the National Association of Cider Makers (NACM).

Mr Russell added: “We will make the positive case for the effect of the exemption to be protected whether by retaining the existing legislation or by other means.”

Cider has enjoyed a renaissance in the UK in recent years as people in the UK drink less beer. Groups such as London-based Fuller, Smith & Turner have bought cider producers in recent years, while even the global group AB InBev, which makes Stella Artois and Budweiser, has highlighted cider as a growth area. In total, the UK produces 130m gallons of cider a year, according to the NACM.

The UK government has used duty reforms as a populist measure, knocking a penny off beer duty in the previous two Budgets, and removing the “escalator”, which imposed an automatic increase of 2 percentage points above inflation in duty. The government froze duty on most ciders in the 2014 Budget.

The UK has two months to respond to the commission.

Edited by 5co77ie
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I believe Burrow Hill like most small scale cider manufacturers will be made extinct, certainly looks that way from this old article:

http://fashion.telegraph.co.uk/article/TMG9202022/Designer-Alice-Temperley-lobbies-to-save-her-familys-cider.html

least you'll still have that rubbish Strongbow and Magners :bad:

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The EU are trying ot get all our lovely small scrumpy producers shut down by sending them out of business:

The EU have only said that UK taxes need to be consistent, as the UK govt have signed up within the EU to doing.

Currently, small producers who sell less than (roughly) 12,000 pints a year are exempt from alcohol duty, whilst other small alcohol brewers are not.

The EU says the exemption or tax has to be equal across all small brewers of alcohol. The UK govt could give small beer and wine producers the same exemption and the EU would be happy.

That exemption equates to 20.8pence per-pint - not nearly enough to stop any cider drinking a premium product if they want to drink that premium product which typically costs £5-ish.

The national body of cider makers (I forget it's name) reckons the exemption should go, and that would benefit the whole UK cider industry if it did. Lots of smaller producers stay as small producers only because of the tax exemption and the free money they get because of it.

So...

- it's not the EU. Its the UK govt not having done what they said they'd do.

- it's not a huge price rise, if the tax is applied.

- and it doesn't damage the cider business but instead improve it.

Scott, you've been used by UKIP. ;)

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Yeah I know - I had my local scrumpy cyder supplier explain it all a few days ago pretty much what you said, though it got a bit muddled in my head due to the sampling of his product at the same time

Edited by 5co77ie
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