Representatives from leading drinks brands have called on the Government for greater support to help save the plummeting UK cider market.
At a Parliamentary reception held at Westminster last night, Martin Thatcher, Chair of the National Association of Cider Makers (NACM), said the industry had experienced five years of steep decline with sales contracting by 20%.
In the last year alone, UK cider has suffered a significant 5% fall in sales as a lasting effect of increased cider duty rates. NACM is calling on the Government to cut duty by 1.2p per pint to help return the industry to growth.
Martin Thatcher, Chair of the NACM, said: “There are more than 500 cider makers in the UK with some 7,000 people employed in the industry. It is an industry which is woven into the fabric of the UK’s heritage and one that plays a vital role in our rural economy.
“More than that, UK apple cider generates £1 billion in supply contracts and £100,000,000 in exports. But its fortunes have always been directly linked to duty levels and this latest period, where duty rates have moved closer to other categories with less complex business models, is almost entirely the reason why cider sales have declined.
“We’re asking the Government to work with us to make sure the duty system is fit for purpose and to help us secure the future of one of the UK’s longest-standing industries.”
Over 50% of world cider is sold in the UK. Great investment has been made in upskilling staff, training new experts and planting more orchards but despite this sales volumes for cider have shrunk by one fifth over the last five years.
Martin Thatcher says this shows the conflict between the cider business model and the extreme impact duty levels can have on customer demand. He said: “Our growing cycles are measured in decades not seasons. Seven years ago we were in a period of strong growth, duty was at a sustainable rate and cider makers had the confidence to invest. Now these orchards are reaching maturity but the duty escalator has drained customer enthusiasm. We need the duty level to be cut by 1.2p per pint to help us bring the market back to growth.”
