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Speciality Spirits.

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  • p00hsticks
    p00hsticks Posts: 14,450 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    Cardew said:
    Cardew said:
    MysteryMe said:
    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.

    The extension of that reasoning is that most people would be prepared to pay £21.98 a litre for a nice tasting drink with a zero% ABV

    Well, let's say £20.71 a litre......


    Thanks, that certainly trumps the Aldi example I gave.

    I had forgotten that I had seen that in Sainsburys displayed next to regular bottles and at the same price.

    Cardew said:
    Cardew said:
    MysteryMe said:
    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.

    The extension of that reasoning is that most people would be prepared to pay £21.98 a litre for a nice tasting drink with a zero% ABV

    Well, let's say £20.71 a litre......


    Thanks, that certainly trumps the Aldi example I gave.

    I had forgotten that I had seen that in Sainsburys displayed next to regular bottles and at the same price.

    Many, many moons ago I worked for a large brewer and they were just introducing low-alcohol / alcohol free beers.
    At the time these were made by brewing the beer as usual and then extracting the alcohol (I can't remember if this was done by heating or cooling). This mean that it was actually more expensive to produce the alcohol free variety than the alcoholic one since an addiitonal process was required. 

    I also vaguely seem to recall something about the brewery arguing about initially having to pay duty on the alcohol free variety because at that time  the duty calculation had to be done at the point when the alcoholic volume was highest (i.e.e before the alcohol was removed ) but it's all a bit hazy now (too much alcohol over the years !) and I'm sure doesn't happen now....
    Similar reason to why decaffinated tea and coffee is more expensive than normal tea 

    Although more expensive to produce - and presumably also less economy of scale - alcohol-free versions of alcolholic drinks shouldn't now have any duty on them and so should be considerably cheaper, except that it appears retailers beleive they can ask the same price or more for the alcohol free version and get away with it.
  • rhcp
    rhcp Posts: 2,048 Forumite
    Part of the Furniture 1,000 Posts
    Someone on Dragon's Den last week was trying to push pouches of alcohol for cooking, as they said people ended up buying a bottle when they only needed a small amount.  The volume of alcohol was lower and that was to save on costs.  Turned out quite expensive.  Ocado supplied them, I think they said.
  • briskbeats
    briskbeats Posts: 434 Forumite
    100 Posts Name Dropper
    rhcp said:
    Someone on Dragon's Den last week was trying to push pouches of alcohol for cooking, as they said people ended up buying a bottle when they only needed a small amount.  The volume of alcohol was lower and that was to save on costs.  Turned out quite expensive.  Ocado supplied them, I think they said.
    I remember a product which was wine in a similar thing to Knorr stock pots. Must been 15 years ago
  • Cardew
    Cardew Posts: 29,060 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Rampant Recycler

    Although more expensive to produce - and presumably also less economy of scale - alcohol-free versions of alcolholic drinks shouldn't now have any duty on them and so should be considerably cheaper, except that it appears retailers beleive they can ask the same price or more for the alcohol free version and get away with it.
    Thank you! That was exactly the point I was making on a money saving website; and wondering if some people were aware of the practice.



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