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.
Can liqueur products with 24% ABV be classified as wine for duty purposes to benefit from lower duty rates?
No—the duty classification depends on the base ingredient, not the final ABV. The key rule is that a product must be **51% fermented base and 49% spirit base** to qualify as "made wine" for duty purposes. If your liqueur is spirit-based, it will be classified as spirits regardless of whether it's 24% or 22% ABV, and you'll pay the higher duty rate (approximately £3.45 per 500ml bottle vs. £1.99 for wine-classified products). If your liqueur is wine-based and fortified to 22% ABV or lower, you may qualify for the wine duty bracket. Members confirm this distinction is strict and non-negotiable with HMRC.
What are the regulatory and trademark rules around spirit drink classifications, and how do companies navigate category definitions?
Spirit drink classification sits in a murky space where trademark law and industry standards don't align well. Here's what members have encountered: **Regulatory enforcement:** Enforcement typically falls to local authorities and trading standards bodies, and may only trigger if complaints reach them or major retailers like Tesco demand correct labelling. This creates a compliance gap where non-compliant products can remain on shelves unless actively challenged. **Category definition vs trademark:** The trademark system operates independently of spirit drink industry definitions, so trademark holders rarely consider (or know) the technical category rules. This mismatch means products can be registered with names that wouldn't comply with spirit drink regulations—and changing this is difficult once locked in. **Portman Group guidance:** Members were advised by the Portman Group to avoid using numbers in spirit drink names, as the average category strength is still undefined. Using a number now could later tie you to rules that contradict it if category standards solidify. **Real-world examples of the grey area:** Products like flavoured vodkas with added citric acid, and bottles marketed as one spirit category but at ABV levels that technically belong to another, have remained on shelves. Some use this ambiguity as a selling point. Retailers and regulators appear to tolerate these products unless pressured or unless consumer complaints escalate. **Key caveat:** This is uncharted territory. The overlap between trademark registration, spirit drink regulations, and enforcement discretion creates uncertainty. Members noted this would benefit from formal Kindred discussion.