just-drinks.com March 22, 2010
Issue 515

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Editorial

Olly Wehring

It's Budget week here in the UK and the drinks sector will be watching nervously for tax figures from Chancellor Alistair Darling.

From what we understand, it looks unlikely that the Government will press the emergency stop button on its four-year tax "escalator" on alcohol. This provides for a 2% above inflation rise on all drinks this year, which, at current inflation, means a 5% rise in real terms. If any sectors are to be hit harder than others, spirits and cider could be in the firing line for having seen lower tax rises than beer and wine in the last couple of years.

Pressure to act tough on excess drinking and the need to plug a cavernous hole in public finances are greasing the tax escalator's rollers.

However, there is growing concern in the industry that the tax system has made the UK a bad place to do business in drinks, particularly with value sales under added pressure from the recession.

Responsible wine merchants, pubs and producers are feeling the strain of a policy that threatens to neither increase Government revenue nor reduce harmful alcohol consumption. Fingers crossed that the Chancellor has got the message.

In other news, just-drinks attended a Champagne briefing last week, to hear of the industry mood and of a new initiative to introduce lightweight Champagne bottles.

Continuing the environmental theme, brewing giant A-B InBev last week announced water use targets at its breweries.

In soft drinks, we pondered The Coca-Cola Co's plan to acquire Nidan Juices in Russia, as well as PepsiCo's soft drinks policy for schools worldwide.

Until next time...

Olly Wehring, Managing Editor

Web: www.just-drinks.com
Email: editor@just-drinks.com

Twitter: just_drinks

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