Has anyone else noticed the growing trend to market ‘speciality’ flavoured spirits that are low in alcohol and high in price. In particular there has been an explosion in flavoured Gin.
The duty rate on spirits is £28.74 per litre of pure alcohol. So a litre of ‘full strength’ (40% abv) spirit has a duty charge of £11.50. In addition 20% VAT is charged on the whole drink. Many bottles of Gin and Vodka have an strength of 37.5% abv so a duty of £10.78p a litre(plus VAT) is payable.
In Aldi a standard litre bottle of Gin (37.5% abv) can be bought for £14.19. However from the same shop this half litre bottle with a 20% abv costs £10.99 i.e.£21.98 a litre
I wonder how many customers appreciate they are paying over 50% a litre extra for Gin that is just over half the alcohol strength of ‘standard’ Gin.This situation is not confined to Aldi, low alcohol flavoured Gin, Vodka and Rum is sold in many shops at a huge mark-up over the standard product.
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Baileys Irish cream liqueur is only 17% alcohol. Whiskey is 40%.
This is nothing new.
But in terms of price, its nothing to do with the tax and all to do with what the seller thinks the market will bear, if people pay that price for it, they will charge it. Also smaller more specialist things tend to be higher prices.
It's like asking why diet coke is more expensive than water when the VAT on both is 20%.
On a money saving website I was merely making a point on value.
So much to read, so little time.
If the only thing you care about is abv, they're not good value. If you want the most alcohol for the least money, then Frosty Jack's is £1.59 for 1L at 7.5% in B&M. Most people buy alcohol they enjoy the flavour and experience of, and frankly, the cost of anything in a supermarket is dirt cheap compared to pubs.