As new figures show the spirits sector is a top five manufacturing sector, the UK Spirits Alliance (UKSA) is calling on the Government to let distillers thrive.
Spirits – despite a challenging year – are the only drinks category in the top five food and drink manufacturing sectors in the UK according to the Food and Drink Federation Powering Communities Report.
It has been a tough 12 months for the sector as distillers grappled with a set of tax rises – including a hike in alcohol duty.
But the new data from the Food and Drink Federation underlines gin and whisky producers’ resilience:
- Spirits are the only drinks category in the top five food and drink manufacturing sectors in the UK
- Spirits are the top food and drink employer, with over 10,000 jobs
- There are 920 spirit producers across the UK
- Scotland is home to the most spirits producers, with 235 spirits businesses, the second-highest number of any sector in the region
- Meanwhile, the Southeast, West and London combined are home to 330 spirits businesses.
Over the last decade hundreds of entrepreneurs have started innovative distilleries producing high quality, sustainable British products for pubs, supermarkets and sold around the world.
But instead of celebrating this success story, successive Governments have singled the sector out for crushing tax rises.
On 1 February, a 3.65% increase in excise duty, announced in the budget last year, came into effect. This follows a 10.1% increase imposed by the previous Government in 2023.
A poll of pubs ahead of the Autumn Budget showed that 1 in 4 have a distiller supplier that has gone out of business.
Stephen Russell, founder and managing director of the Copper Rivet Distillery, and spokesperson for the UK Spirits Alliance said: “British distillers have had a difficult time recently, being hammered by huge hikes in spirits duty by successive governments, including a recent 3.6 pc rise by the Chancellor earlier this year.
“We welcome this report from the Food and Drink Federation, which shows that spirits are among the top five food and drink manufacturing sectors in the UK.
“British spirits are not only a source of national pride but also an economic powerhouse. The British government needs to create the right conditions for growth so distillers across the country can thrive.”
