Knowledge Base

Ask the Collective

The questions independent drinks founders ask most — answered. Distilled from years of community knowledge so the good stuff never disappears in the feed again.

Regulation & Compliance7 discussions

What are the practical options for getting RTD canned cocktails into the French market given the combined alcohol duty and sugar tax?

France's combined alcohol duty (€0.23 per unit) and sugar tax (€1.31 per unit) effectively closed the RTD canned cocktail market almost overnight—it was a deliberate policy to target youth drinking. Retail viability is extremely difficult under current taxation, but members identified a few approaches others have attempted: - **Desperados** — the primary successful RTD retail brand in France; uses a tequila base, suggesting spirit-based positioning may help navigate the tax structure - **Féfé** — another visible RTD brand, though category presence remains minimal - **Reformulation to malt-based or sugar-free**: Members suggest swapping sugar for sweeteners (referenced as a tactic Britvic uses) or moving to a neutral malt base to reduce tax exposure. One member offered to help with reformulation and can share ingredient suppliers if needed - **Increase ABV**: One experienced producer noted "up the abv is the only way" - **Contact Aston Manor**: They have a parent company in France and produce high-sugar-content perry and cider-based cocktails; worth approaching for market-entry insights **Important caveat**: The market is heavily constrained. Members noted that RTD cocktails "barely exist" in France at present. The category has been largely replaced by flavoured beers (mango, raspberry, etc.), which sit in a different tax bracket. France remains "a nightmare for the category" overall.

#rtd#france#tax#alcohol-duty
Regulation & Compliance3 discussions

Do RTD beverages need duty stamps or VAT stickers when imported to the UK?

RTD beverages do not require duty stamps when imported, even if they contain spirits fortification. Members clarified that duty stamps (which differ from VAT stickers) are not applicable to RTDs. For the definitive rules on which products require duty stamps, refer to the UK government's Excise Notice DS5 on the UK duty stamps scheme, particularly Section 3, which sets out the full list of products subject to the requirement. If your RTD is non-fermented and fortified with spirits, duty stamps do not apply based on community experience.

#rtd#excise#duty-stamps#imports
Regulation & Compliance2 discussions

What is the correct conversion rate for cans to 9L case equivalents for regulatory reporting?

Members use different approaches depending on whether they're converting packaged cans or calculating spirit equivalents for RTD/cocktail products. **For canned beverages:** The straightforward method is to divide physical case sales by 3. Since 12 × 250ml cans = 3L in a physical case, three physical cases = 9L case equivalent. So simply divide your invoiced physical sales by 3 to get your 9L reporting figure. **For RTD and spirit-based products:** Members use volume-based equivalency rather than a fixed ratio: - **Diageo's historical approach** — used 10× the volume as a case equivalent (so 90L of RTD = 1 × 9L case equivalent), based on the logic that spirits are ~40% ABV and RTDs are roughly 1/10th of that strength. - **Actual spirit content method** — some members calculate based on the actual spirit volume used to create the product. For example, if a 20L KeyKeg of a spirit-based RTD contains enough to make 125 cocktails with 4cl spirit each, that's 5L of spirit equivalent to report—described as "probably not the 'right' way" but "very logical and it works." **Caveat:** Members noted uncertainty about which is the "official" method for regulatory purposes, so clarifying with your local regulatory body (HMRC/equivalent) on which approach they expect is recommended.

#regulatory reporting#spirits#rtd#cans
Regulation & Compliance1 discussion

What is the correct excise commodity code for canned RTD spirits at reduced ABV?

For canned RTD spirits at reduced ABV (below the original spirit's proof), members confirm the commodity code is **2208 90 69**, classified as "other spirituous beverage in containers holding 2 litres or less." This applies even when the finished product is significantly lower ABV than the base spirit (e.g., rum-based RTDs diluted from 40% to 6% ABV). The CN code 2208 90 00 is the parent code; 2208 90 69 is the specific classification for sub-2L containers. Multiple members verified this classification with their own advisors, confirming consistency across the community.

#excise#rtd#spirits#commodity-code