Supermarkets like Tesco, Aldi, and Lidl are using a loophole in the tax system to make and sell cheap cider that can have harmful effects on health and societal issues, according to alcohol campaigners. Although the cost of other alcoholic drinks such as beer, wine, and spirits have shot up, the price of ciders, some containing as much as 7.5% alcohol, have either remained the same or have only slightly increased. This is due to supermarkets exploiting a subsidy intended to boost apple production by selling high-strength ciders at “pocket money prices.” Alcohol Change UK says that the cheapest cider now costs £1 a litre, the same as the supermarket’s own-brand apple juice, which has increased in price by 70% since 2020.
Alcohol Change UK’s director of research and public affairs, Ash Singleton, argues that big producers use concentrated apple to legally call it cider and take advantage of tax breaks, while supermarkets stock it at pocket money prices. This leads to “unsafe streets, NHS pressure, and early deaths, with working-class neighbourhoods bearing the brunt of this irresponsible profit racket left by the last government.” Due to UK law, cider that is between 3.5% and 8.5% ABV is only taxed at £9.67 per litre of alcohol, which is 46% of the £21.01 per litre that is applied to beer. Alcohol Change UK has written a letter to the public health minister stating that the tax loophole allows multinational companies to take advantage of subsidies meant for small, genuine UK-based cider makers.
However, the British Retail Consortium rejects these claims and states that supermarkets have been instrumental in promoting responsible drinking by adopting health department labeling and collaborating with the Drinkaware Trust, which has helped lead to a decline in excessive drinking.
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Source: https://www.theguardian.com/society/2025/jun/07/uk-supermarkets-tax-loophole-cider-pocket-money-prices
