After shrinkage inflation, it’s now liquor inflation! Brewers are pocketing millions by secretly cutting alcohol into beer – without lowering prices
- Brewers cutting alcohol in beer, including Foster’s, Old Speckled Hen and more
- Lower alcohol percentages – “drinking inflation” – save companies millions of pounds in taxes
Brewers have reduced the alcohol content in popular beers and lagers – saving millions of pounds in tax – without cutting costs for customers.
The Mail on Sunday can reveal the move, dubbed ‘drinking inflation’, meaning shoppers have been unwittingly buying weaker beer for months while being charged the same.
It mirrors “shrinkflation” – stealth cuts in package sizes and portions introduced by food giants and supermarkets.
But critics say booze inflation is more insidious because there’s no change in the shape or size of bottles and cans — and they hold the same amount of liquid.
Popular brands with reduced alcohol content include Foster’s, Old Speckled Hen, Bishops Finger, and Spitfire. And it is predicted that similar reductions will be made to others due to a change in law in August, meaning excise duty on most drinks will be tied solely to alcohol content.
A Mail on Sunday study found that the volume of alcohol (ABV) for Foster’s, sold by Heineken in the UK, has fallen from four per cent to just 3.7 per cent since earlier this year.
Meanwhile, the ABV for Old Speckled Hen has dropped from five percent to 4.8 percent; Spitfire Amber Ale is down from 4.5 percent to 4.2 percent; and Bishops Finger fell from 5.4 percent to 5.2 percent.
While the discounts may seem small, they generate tax savings of 2p to 3p on every bottle and can made. Instead of passing this savings on to the drinkers, the money is pocketed by the brewers and shopkeepers.
They claim the reduction protects them from rising costs, rather than making a profit, while some say they are reducing alcohol content for “the good of public health.”
Dr. Sadie Boniface, head of research at the Institute of Alcohol Studies, questioned the claims. She said, “Alcohol multinationals are … profit-driven companies that want to make money for their shareholders.”
Some brewers, including Heineken, are not ruling out doing the same with their other brands, including Heineken itself, as well as Amstel, Birra Morretti, John Smith’s and Newcastle Brown Ale.
Colin Angus, a research fellow at the University of Sheffield, claims that if each brewery cut alcohol content by just 0.3 per cent, they would collectively save about £250 million in excise tax payments to the government. “If they kept prices the same for consumers, the big brewers would pocket most of that savings as extra profit,” the alcohol policy expert said.
“Sometimes brewers claim they made these strength reductions for health reasons. However, given their historically strong opposition to public health policies, the motive is much more likely to be financial.’
A Mail on Sunday study has found that volume of alcohol (ABV) for Foster’s, sold by Heineken in the UK, has fallen from four per cent to just 3.7 per cent since earlier this year
Greene King, producer of Old Speckled Hen, said it saves taxes by lowering alcohol content without lowering prices. She argued that this was necessary to counter rising costs.
It said: ‘Events of recent years have significantly increased costs. Greene King continues to look for ways to absorb those rising costs to ensure we can continue to offer our customers the same great value and taste of Old Speckled Hen. Shepherd Neame, who makes Spitfire and Bishops Finger, offered a different statement: “Consumers are increasingly choosing lower alcohol content drinks as part of a healthy lifestyle – we hope this will encourage more people to try our award-winning flagship beers.”
Heineken would just say, ‘We’re watching our portfolio.’
Emma McClarkin, managing director of the British Beer and Pub Association, said: ‘Brewers have faced escalating price increases and as far as possible they have absorbed costs to avoid overpaying customers.’