Increased Drinks Tax Forces Top Gin Producer Tanqueray to Lower ABV

Amid increased drinks taxes in the U.K., Tanqueray plans to lower its gin’s ABV from 43.1% to 41.3%. (Photo: Leonardo Luz/Pexels)

An increased drinks duty in the U.K. is causing distilleries to close and top gin producers like Tanqueray to lower their alcohol content, according to Daily Mail.

The situation is reportedly set to worsen as the U.K. government plans to raise wine duty by 20% and spirits duty by over 10%. From August 1, alcohol duty will be unfrozen, and taxes will be determined based on the strength of the beverage, per Yahoo Finance UK. This means that drinks with higher ABV will be subject to heavier taxation. These changes aim to align alcohol taxation with its strength and could have an impact on consumer purchasing habits and the overall cost of alcoholic beverages in the country.

Notably, Tanqueray London Dry Gin has reduced its alcohol content from 43.1% to 41.3% to manage these duty costs. According to Daily Mail, at the original ABV of 43.1%, the duty payable amounted to £8.67 ($11.02) and was set to increase to £9.54 ($12.13). However, with the ABV lowered to 41.3%, the current duty payable stands at £8.31 ($10.56), which will escalate to £9.14 ($11.62) in August.

The Chief Executive of the Wine and Spirit Trade Association, Miles Beale, urged the government to abandon the duty increases, stating that they are jeopardizing British gin producers and putting more jobs at risk.

“The Government’s duty hikes are fuelling inflation and putting our globally renowned British gin producers under threat,” Beale said, per Daily Mail. “There has been a recent spate of distilleries being forced to close after Covid crushed the hospitality sector.”

“More jobs are now under threat as gin prices will rise with the huge duty hikes coming our way on August 1. The government does not need to do this, it should be supporting what Britain does best and not putting the boot in.”

In response to the challenges, gin brands have also turned to offering more alcohol-free products, which seem to yield higher profits since there is no duty. However, these zero-alcohol alternatives often come at prices similar to spirits despite being essentially botanical-infused water. For example, Tanqueray’s alcohol-free “spirit” is sold for £17.50 ($22.23), while the brand’s original gin is not too far off at £22 ($27.94), Daily Mail reported.

Read next:

British Politician Under Fire as Gin Distillers Accuse Him of Not Backing England’s National Liquor

Monthly Roundup: Top 20 Gins Released in June 2023

Food Scientist Reveals the ‘Perfect’ Gin and Tonic Recipe — And It’s Way More Complex Than You May Think

Here at Gin Raiders, we do more than write about current events in gin and spirits. We are the only media property reviewing gins and aggregating the scores and reviews of other significant voices in the gin world in one place. If you’re interested in getting a shot of gin in your morning email, sign up for our Deal of the Day newsletter.