Shrinkflation becomes Drinkflation: Brewers cut Alcohol in Beer (to reduce tax)

After shrinkflation, now it's drinkflation! Brewers pocket millions by sneakily cutting alcohol in beers – without reducing prices

• Brewers cutting alcohol in beers, including Foster's, Old Speckled Hen and more
• Lower alcohol levels - 'drinkflation' - saves firms millions of pounds in taxes

Brewers have been cutting the alcohol levels in popular beers and lagers – pocketing millions of pounds saved on tax – without reducing the cost to customers.

The Mail on Sunday can reveal the move, dubbed 'drinkflation', means shoppers have been unwittingly buying weaker ale for months while being charged the same.

It mirrors 'shrinkflation' – stealth cuts in package sizes and portions introduced by food giants and supermarkets.

But critics say drinkflation is more insidious because there is no change in the shape or size of bottles and cans – and they contain the same amount of liquid.

Among the popular brands where the alcohol content has been cut are Foster's, Old Speckled Hen, Bishops Finger and Spitfire. And it is predicted that similar reductions will be made to others due to a law change in August, which will mean the duty charged on most drinks will be solely linked to alcohol strength.

A Mail on Sunday investigation has discovered the alcohol by volume (ABV) for Foster's, sold by Heineken in the UK, has dropped since earlier this year, from four per cent to just 3.7 per cent.

Meanwhile, the ABV for Old Speckled Hen is down from five per cent to 4.8 per cent; Spitfire Amber Ale is down from 4.5 per cent to 4.2 per cent; and Bishops Finger is down from 5.4 per cent to 5.2 per cent.

While the reductions may appear small, they generate a tax saving of 2p to 3p on every bottle and can made. Rather than passing this saving on to drinkers, the cash is being pocketed by the brewers and retailers.

They argue the cut protects them against rising costs, rather than profiteering, while some say they are cutting alcohol levels for the 'good of public health'.

Dr Sadie Boniface, head of research at the Institute for Alcohol studies, questioned the claims. She said: 'Alcohol multinationals are... profit-driven companies that want to make money for their shareholders.'

Some brewers, including Heineken, have not ruled out doing the same with their other brands, including Heineken itself, as well as Amstel, Birra Morretti, John Smith's and Newcastle Brown Ale.

Colin Angus, a research fellow at the University of Sheffield, claims that if every brewery cut alcohol levels by just 0.3 per cent, they would collectively save around £250 million on duty payments to the Government. 'If they kept prices to consumers the same, the major brewers would pocket the majority of that saving as additional profit,' the alcohol policy expert said.

'Sometimes brewers make the case that they have made these reductions in strength levels on health grounds. Given their historically strong opposition to public health policies, though, the motive is much more likely to be financial.'

A Mail on Sunday investigation has discovered the alcohol by volume (ABV) for Foster's, sold by Heineken in the UK, has dropped since earlier this year, from four per cent to just 3.7 per cent

Greene King, which produces Old Speckled Hen, said it makes a saving on duty by cutting ABV without reducing prices. It stated that this was necessary to fight rising costs.

It said: 'Events of the past few years have significantly increased costs. Greene King continues to look at ways we can absorb those increasing costs to ensure we continue to offer our customers the same great value and taste of Old Speckled Hen. Shepherd Neame, which makes Spitfire and Bishops Finger, offered a different explanation: 'Consumers are increasingly choosing drinks with a lower alcohol content as part of a healthy lifestyle – we hope this will encourage more people to try our award-winning flagship beers.'

Heineken would only say: 'We keep our portfolio under review.'

Emma McClarkin, chief executive of the British Beer and Pub Association, said: 'Brewers have faced mounting price increases, and as far as possible they have absorbed costs to avoid customers paying over the odds.'

+2

In need of a stiff drink? The price of commodities used in beer production have shot up 

Brewers have been cutting the alcohol levels in popular beers and lagers — pocketing millions of dollars saved on tax