Duty Reform
As announced by the Chancellor at the Spring Budget 2023, the Government will increase duty rates under the revised duty structure for alcohol products, effective 1st August 2023, in line with the Retail Price Index (RPI). This includes all alcoholic products produced in, or imported into, the UK. All alcoholic products will now be measured using ‘Alcohol by Volume’ (ABV). The standard rate of duty for Spirits over 22% ABV is increasing by 10.1% in line with RPI.
Other Cost Pressures
Alongside this rise in duty there have been a number of price increases throughout our supply chain over the past two years, with many suppliers reporting their own cost pressures from raw materials and transportation, to higher contract labour costs due to staff shortages.
The paper and packaging industry has experienced a significant increase in demand for paper-based packaging products driven by the traditional peak periods and sustained changes to consumer shopping habits throughout Covid-19 and beyond. Coupled with paper price increases and other significant increased input costs, packaging increases have been numerous over the past 12 months, the latest being 8.8%.
Another area that has seen a significant increase in cost is glass due to the gas and electric required for production, the most recent being a 25.9% increase. We are investing heavily into R&D to not only reduce the cost of our glass but also reduce the weight of our bottle by 30% to better its carbon footprint, as well as other initiatives to reduce our product’s impact across the on and off trades.
How Does This Impact Our Customers?
Although we have absorbed the above increases since the launch of Hattiers, we are writing to inform you of an adjustment to our pricing, effective for all orders on or after 1st August 2023.
Egremont Premium Reserve Rum 40% ABV 70cl will increase to £44.00
Eminence Blended Aged White Rum 42% ABV 70cl will increase to £39.00
Resolute Blended Aged Navy Strength Rum 54.5% ABV 70cl. Through efficiencies we have been able to retain the same price of £56.00 and are able to pass this benefit on to you as a valued customer.
We are sorry that we have had no choice but to increase the price of two of our rums at a time when we are all feeling the effects of everything becoming more expensive. We thank you for your valued business and continued support.
Yours sincerely,
Philip Everett-Lyons, Founder & CEO.