Speciality Spirits. 21 June 2021 at 9:19PM edited 27 September 2021 at 8:22AM in Gone off! 24 replies 532 views

Cardew

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

 https://groceries.aldi.co.uk/en-GB/p-the-infusionist-apricot-lychee-gin-liqueur-50cl/4088600373874

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.

briskbeats

Gin liquor is different to gin. Unsure if that has different % duty.

jon81uk

liqueurs have always been a lower % alcohol compared to the spirit they are made with.

Baileys Irish cream liqueur is only 17% alcohol. Whiskey is 40%.

This is nothing new.

Cardew

jon81uk said:

liqueurs have always been a lower % alcohol compared to the spirit they are made with.

That is not correct - Drambuie - a whisky based liqueur is 40% ABV,  Grand Marnier - cognac based is 40% ABV, Cointreau is 40% ABV, Benedictine is 40% ABV and many lesser known liqueurs are 40% ABV or higher.

However that wasn't the issue! Duty is charged on the alcohol content and I was pointing out that many of these 'speciality' drinks are low in alcohol, yet high in price. In the example I gave a 20% ABV gin based drink is £21.98 a litre.

 

jon81uk

Cardew said:

jon81uk said:

liqueurs have always been a lower % alcohol compared to the spirit they are made with.

That is not correct - Drambuie - a whisky based liqueur is 40% ABV,  Grand Marnier - cognac based is 40% ABV, Cointreau is 40% ABV, Benedictine is 40% ABV and many lesser known liqueurs are 40% ABV or higher.

However that wasn't the issue! Duty is charged on the alcohol content and I was pointing out that many of these 'speciality' drinks are low in alcohol, yet high in price. In the example I gave a 20% ABV gin based drink is £21.98 a litre.

 

Okay, many liqueurs are lower alcohol, not all.

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%.

MysteryMe

Whilst the retailer is getting a bigger margin thanks to lower duty, I imagine for most people it's the taste of the drink that is the driving force towards a purchase rather than ABV.

Cardew

jon81uk said:

Cardew said:

jon81uk said:

liqueurs have always been a lower % alcohol compared to the spirit they are made with.

That is not correct - Drambuie - a whisky based liqueur is 40% ABV,  Grand Marnier - cognac based is 40% ABV, Cointreau is 40% ABV, Benedictine is 40% ABV and many lesser known liqueurs are 40% ABV or higher.

However that wasn't the issue! Duty is charged on the alcohol content and I was pointing out that many of these 'speciality' drinks are low in alcohol, yet high in price. In the example I gave a 20% ABV gin based drink is £21.98 a litre.

 

Okay, many liqueurs are lower alcohol, not all.

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.

Exactly my point.

jon81uk

Cardew said:

jon81uk said:

Cardew said:

jon81uk said:

liqueurs have always been a lower % alcohol compared to the spirit they are made with.

That is not correct - Drambuie - a whisky based liqueur is 40% ABV,  Grand Marnier - cognac based is 40% ABV, Cointreau is 40% ABV, Benedictine is 40% ABV and many lesser known liqueurs are 40% ABV or higher.

However that wasn't the issue! Duty is charged on the alcohol content and I was pointing out that many of these 'speciality' drinks are low in alcohol, yet high in price. In the example I gave a 20% ABV gin based drink is £21.98 a litre.

 

Okay, many liqueurs are lower alcohol, not all.

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.

Exactly my point.

Sorry, I thought your point was that they are too expensive and customers don't realise they are paying over the odds?

Cardew

jon81uk said:

Cardew said:

jon81uk said:

Cardew said:

jon81uk said:

liqueurs have always been a lower % alcohol compared to the spirit they are made with.

That is not correct - Drambuie - a whisky based liqueur is 40% ABV,  Grand Marnier - cognac based is 40% ABV, Cointreau is 40% ABV, Benedictine is 40% ABV and many lesser known liqueurs are 40% ABV or higher.

However that wasn't the issue! Duty is charged on the alcohol content and I was pointing out that many of these 'speciality' drinks are low in alcohol, yet high in price. In the example I gave a 20% ABV gin based drink is £21.98 a litre.

 

Okay, many liqueurs are lower alcohol, not all.

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.

Exactly my point.

Sorry, I thought your point was that they are too expensive and customers don't realise they are paying over the odds?

I was certainly making the point that I thought they were too expensive. However what I wrote was:

'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.'

The operative word is 'wonder' and some people, doubtless yourself, are fully aware of the situation.

On a money saving website I was merely making a point on value.

Rosa_Damascena

jon81uk said:

liqueurs have always been a lower % alcohol compared to the spirit they are made with.

Baileys Irish cream liqueur is only 17% alcohol. Whiskey is 40%.

This is nothing new.

Sometimes it pays to mix your drinks to get the full flavour, and this is a good example.

Mnoee

Cardew said:

jon81uk said:

Cardew said:

jon81uk said:

Cardew said:

jon81uk said:

liqueurs have always been a lower % alcohol compared to the spirit they are made with.

That is not correct - Drambuie - a whisky based liqueur is 40% ABV,  Grand Marnier - cognac based is 40% ABV, Cointreau is 40% ABV, Benedictine is 40% ABV and many lesser known liqueurs are 40% ABV or higher.

However that wasn't the issue! Duty is charged on the alcohol content and I was pointing out that many of these 'speciality' drinks are low in alcohol, yet high in price. In the example I gave a 20% ABV gin based drink is £21.98 a litre.

 

Okay, many liqueurs are lower alcohol, not all.

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.

Exactly my point.

Sorry, I thought your point was that they are too expensive and customers don't realise they are paying over the odds?

I was certainly making the point that I thought they were too expensive. However what I wrote was:

'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.'

The operative word is 'wonder' and some people, doubtless yourself, are fully aware of the situation.

On a money saving website I was merely making a point on value.

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.