Tonic for the Treasury as gin overtakes beer
Gin and tonic has long been a favourite tipple for Britons of a certain age. In recent years, the spirit has been adopted by younger generations, with sales rising 12 per cent over the past year. It has helped spirits to bring in more revenue for the Treasury than beer for the first time.
BRITAIN has become a nation of cocktail drinkers with sales of spirits – in particular gin – for the first time earning more revenue for the Treasury than beer.
Gin sales have risen 12 per cent over the past year with 43 million bottles sold across the country, according to the Wine and Spirit Trade Association.
Last year, the Government made nearly £3.4billion in tax revenue from spirits, up by 7pc on the previous year. Beer sales made £3.2billion in 2015-16 and rose just 1pc over the past year to reach £3.3billion in 2016-17.
Some 60pc of the price of a pint of beer is taken in VAT and alcohol duty, while 76pc of the price of a bottle of gin is taken, according to the WSTA.
Wine remains the biggest earner for the Government, generating more than £4 billion in tax from sales last year.
“We’ve seen a huge boom in gin over the past year, possibly because people have been inspired by the style of early 20th century shows like Downton Abbey and James Bond,” said a spokesman at the WSTA.
“Gin-themed hotels and bars are popping up everywhere and even Mary Berry enjoyed a gin and tonic drizzle cake on Great British Bake Off.”
The number of gin brands has more than doubled since 2010, from 37 to more than 80 in 2016.
An array of gin-themed establishments are opening and the classic gin and tonic drink has been revamped as bartenders add different garnishes to enhance their appeal, including rosemary, sage, orange, grapefruit and basil. A new breed of premium brand tonic waters such as Fever-tree and Fentimans are enjoying success.
However, spirit makers were hit with a 3.9 per cent rise on alcohol duty in the Budget, raising fears that the growth could falter with 30p added to the price of a bottle.