Low Alcohol Descriptors A consultation on the use of low alcohol descriptors Department of Health and Social Care - May 2018 About SIBA SIBA, the Society of Independent Brewers, was established in 1980 to represent the interests of the growing number of independent breweries in Britain. SIBA was instrumental in campaigning for Progressive Beer Duty (PBD), which came into force in 2002. This beer duty system allows smaller breweries to pay a more proportionate amount of beer duty on their products and has led to an explosion of new breweries in the last decade. SIBA currently represents more than 830 independent craft breweries and our vision is to deliver the future of British beer as the voice of British independent brewing. SIBA represents around 85% of the craft beer by production volume made in the UK. Independent craft beer represents around 7% of the overall beer consumed in the UK with 88% of the total market dominated by global brewers. SIBA member breweries lead the UK and the world in beer innovation, including in low alcohol beers. For the purposes of this consultation response, we will understandably focus on beer as opposed to other drinks categories. Context and general comments Market trends Over the last three years the market for lower alcohol products has grown rapidly. Craft beer growth continues to outperform the rest of the beer market year on year 1. As the overall craft beer market has boomed, so too has the lower alcohol segment of craft beer with some estimates saying by as much as 40% growth in the last three years. This is not just true of the UK market, with countries in the Middle East, Asia and Europe also experiencing growth 2. Large global brewers dominate the low alcohol segment of the market, as they do in beer overall. But independent craft beer producers are an important part of this mix. It must be recognised that normal session strength beers of around 4.2% ABV are still the most popular in the UK marketplace by a long way and that lower alcohol beer is a very small (but growing) fraction of the total beer sold in the UK. The lower alcohol segment of the UK beer market is estimated at around 0.5% 3 of the total. In some countries the proportion of lower alcohol beer enjoyed is much higher and is seen as a much more mainstream way of enjoying beer. Individual reasons for this growth in UK demand vary; some may have medical conditions which advise against alcohol consumption. Female consumers may be pregnant and therefore advised against drinking but still want to enjoy a beer. Most will simply want to reduce their overall alcohol consumption but still want the benefits (taste and or/social aspects) of enjoying a drink. Reflecting the inclusive nature of the modern UK beer scene 1 http://toolbox.siba.co.uk/documents/facts%20&%20figures/british%20beer%20reports/siba%20members%20survey%202018.pdf 2 https://www.economist.com/blogs/economist-explains/2013/08/economist-explains-3 3 https://www.telegraph.co.uk/business/2018/02/17/britains-unlikely-low-alcohol-beer-revolution/
there are now a number of breweries in the UK who specialise 4 in creating lower strength beer to meet this demand. We d like to thank those brewers for feeding into this consultation response. In addition to these specialist breweries many more brewers are starting to produce lower alcohol beer alongside their traditional strength beers to capitalise on this demand and access this bit of the market. It should be noted that there are significant technical challenges to brewing a lower alcohol beer that imitates the flavour, taste, body, colour and smell of a normal strength beer. However the UK s independent brewers lead the world in beer innovation and nearly all of these technical challenges are being overcome to create products that are very close to the real thing. The health benefits of sensible alcohol consumption Many people choose to abstain from alcohol or choose lower alcohol products for a variety of legitimate, sensible and well-founded reasons. However sensible alcohol consumption has been shown over 40 years of research to lower overall chance of mortality when compared to tee-totallers. The incidence of Type II diabetes 5, coronary heart disease 6, haemorrhagic stroke 7, pancreatitis, osteoporosis, macular degeneration and gall bladder disease are just some of the conditions that are lower in sensible drinkers. The mental and social benefits of enjoying alcohol sensibly are also frequently overlooked but are significant. Light to moderate enjoyment of alcohol equals improved cognitive function and memory in ageing as well as reduced chance of vascular dementia. Lower alcohol products definitely have a place in UK beer to cater for those who want them. But in context for most consumers the benefits of sensible alcohol consumption to health and well being are numerous and should not be overlooked. Consumer choice and education The single biggest indicator to consumers of the strength of the beer they are drinking is the % ABV printed on the bottle, can or pump clip. For consumers that want to make a conscious choice about the strength of the beer they are drinking this is the first and often only thing they turn to. However the descriptors that are used alongside the ABV on our member s products can have important effects on the choices consumers make and the information available to them through the subtleties in language. They also make important suggestions as to the nature of the products themselves, which at present may not be accurate given how the market has moved on. Public awareness of the descriptors as they are currently defined and used is very low. We believe that the number of members of the public who could accurately define and differentiate what each descriptor actually means is even lower. Low-alcohol, non-alcoholic, alcohol free & de-alcoholised are all, to the average consumer largely interchangeable and synonymous albeit with some important suggested differences to some consumers. Colloquially, they all mean the same thing with only the %ABV as a definitive marker of alcohol strength. It could be said, on this alone that they are not fit for purpose. However any changes made to these descriptors need to be made with appropriate considerations to educating the public about what they mean in conjunction with industry as well as speaking in plain English terms. Improving awareness of the positive and negative effects of alcohol and the terms that are around them are important so consumers are in a place to make informed choices about their behaviour. 4 Big Drop Brewing Co, Nirvana Brewing and Infinite Session are some examples. 5 http://www.bbc.co.uk/news/health-40740247 6 https://www.sciencedaily.com/releases/2016/02/160218060941.htm 7 http://stroke.ahajournals.org/content/37/1/13
Other kinds of products Low alcohol beer is currently subject to these requirements and descriptors but products which are not alcoholic by their nature, but still contain alcohol are not subject to these requirements. Bananas, natural fruit juices and some fizzy drinks naturally contain low levels of alcohol given the sugar content within them will naturally start to ferment over time. Bread and drinks like kombucha also contain low levels of alcohol. The vast majority of the population in the position of buying lower alcohol beer may not be aware that drinking a fruit juice could actually contain higher levels of alcohol by volume (and be generally more unhealthy due to the sugar content) than a lower alcohol beer. This is an area we recommend the Department of Health consider in the context of low alcohol descriptors reform and wider education. International comparisons We understand that European breweries are permitted to label their beer as alcohol free or non-alcoholic at levels of 0.5%. US and Canadian breweries are able to market beer at 0.5% as non-alcoholic. These beers can be purchased in supermarkets and online in the UK. We suggest that the Department of Health consider aligning UK definitions with other producing countries who compete for market share in the UK, simplifying everything for the consumer. Alcohol free vs. De-alcoholised The de-alcoholised descriptor historically is associated with a beer which started its life at a normal strength of around 4% and by way of a number of processes, including boiling, centrifuging or vacuum the alcohol was removed, or de-alcoholised to 0.5% and lower. This was originally the most popular way to create a lower alcohol beer. However the term de-alcoholised now has connotations for some consumers of a product which is unnatural, been treated, tampered with or otherwise chemically modified. This often defeats the purpose of the object when the product is being marketed specifically to a health conscious consumer. Innovations in the brewing process perfected by SIBA members now mean that a beer can start its life at 0.5% ABV and below (and still taste great), without any other processes needed to take the alcohol out. Yet this beer cannot as currently constrained be referred to as alcohol free or non-alcoholic. This process is known as restricted fermentation. De-alcoholised therefore refers to a specific process, rather than an actual descriptor of the strength of the product. Most producers would prefer to use the term alcohol free, or non-alcoholic rather than de-alcoholised for anything up to 0.5% to describe their products. For many brewers who export to European markets, where up to 0.5% is considered alcohol free they have to include a disclaimer or differentiator on the packaging to account for this difference in UK/EU markets We believe that de-alcoholised when applied to products below 0.5% is now no longer appropriate or fit for purpose. Duty purposes vs. consumer purposes An important consideration that the consultation document does not raise is the interaction between descriptors for beer duty purposes, and descriptors for consumer purposes for beer. Descriptors for duty purposes as defined by HMT High strength beer: Exceeding 7.5% ABV Standard rate: 2.9% 7.4% ABV Lower strength: 1.2% 2.8% ABV
Zero rated: 0.0% 1.1% ABV Current descriptors for consumer purposes Low alcohol product must be 1.2% ABV or below; Non-alcoholic cannot be used in conjunction with a name associated with an alcoholic drink except for communion or sacramental wine; Alcohol free product must be 0.05% ABV or below; De-alcoholised product must be 0.5% ABV or lower We have concerns that other stakeholders will attempt to influence the descriptors for consumer purposes in order to lobby for duty changes at a later date. As in, changed consumer descriptors will be used as a signpost for duty changes. For consumer purposes, a low alcohol beer is one generally accepted to be below 1.2% ABV. But for tax purposes a lower strength beer is one below 2.8% but above 1.2%. We have concerns that if the low alcohol descriptor were modified upwards, to include anything up to and beyond 2.8% ABV this would have severe negative consequences. No one can drink two pints of 2.8% beer and not feel an effect. But in the time it takes to drink two pints of 1.2% beer much, if not all of the effect would be metabolised in a normal healthy adult. Many people would be pushed over the safe drink drive limit in the first case but not in the second. We are concerned that in this case, a global brewer could end up paying less duty on a lite but mass market beer than a small brewer would in full receipt of small brewers relief. This would lead to a significant shock in the marketplace and would decimate the business of many small brewers. Answers to Specific Questions Question 1: Do you agree with the Government s preferred option of providing guidance working with industry and other stakeholders to describe low alcohol descriptors rather than legislate after 13 December 2018? Yes or No? If no please provide a reason why? SIBA agrees with the Government approach of providing guidance and working with industry, rather than placing the descriptors in statute. Question 2: Do you have any evidence to support the case for introducing new alcoholic drink descriptors above 1.2% ABV? We do not believe a new descriptor at this level is appropriate or warranted. The very low levels of consumer awareness as to what each descriptor currently means should not be compounded by making the descriptor system more complicated with another definition which would be largely meaningless to consumers. Question 3: For something to be low alcohol the amount of alcohol needs to be 1.2% or less. Do you think the Government should keep this guideline? Yes. Question 4: Should the Government keep the existing descriptor dealcoholised? As referred to above the term de-alcoholised creates (when applied to beer) the (correct) impression that a beer started its life at a normal strength, then through processing has had the alcohol removed. This
descriptor is no longer appropriate for many beers below 0.5% as this is not a process that is used. This term creates a negative connotation for a product that is health focussed where it need not. Use of the terms nonalcoholic and alcohol free be liberalised. The term de-alcoholised should be abolished for use as an approved labelling term and be applicable only to products that have undergone that process. Question 5: Do you agree the term non-alcoholic should be permitted to be used otherwise than in connection with sacramental and communion wines? We agree that the term non-alcoholic should applicable to products other than sacramental or communion wine. Non-alcoholic should be applicable to all products below 0.5%. Question 6: Do you agree that Government should maintain the descriptor alcohol free, and for this to continue at 0.05% ABV? Yes or No. If No, please provide a reason why and alternative suggestions. We believe that the descriptor alcohol free should be retained but redefined as with non-alcoholic to be applicable to any product below 0.5%. Question 7: Do you have any further comments? For the purposes of definition, SIBA would like to see alcohol descriptors become: Low alcohol product must be 1.2% ABV or below; (no change) Non-alcoholic be applicable to any products below 0.5% ABV Alcohol free also be applicable to any products below 0.5% ABV De-alcoholised only applied to products that have undergone that process (and dropped as an approved labelling term) For the purposes of zero alcohol products the 0% ABV mark is a sufficient indicator to consumers of the nature of that product. For more information please contact: James Calder, Head of Public Affairs and Communications 07934 850250 james.calder@siba.co.uk