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.
What are the HMRC criteria for a product to qualify for draught duty rates instead of standard duty?
Draught duty rates apply to products meeting specific criteria set by HMRC, though members note the rules can feel ambiguous and enforcement is inconsistent. **Key criteria for draught duty eligibility:** - **Container size**: 20L and above (containers 20L and below do not qualify) - **Alcohol content**: Must be 8.5% ABV or below - **Delivery system**: Container must incorporate or be designed to connect to a pressurised gas or pump delivery system (this excludes bag-in-box formats) - **End use and venue type**: The critical factor is that the product must be for consumption **on-premise in a licensed venue**. If the same product is taken away for off-premise consumption (e.g., filled into growlers for takeaway), it loses draught duty status and must be charged standard duty rates **Practical application:** Members recommend applying labels to kegs and casks stating "for on-premise sale only" to avoid HMRC disputes, and note that the responsibility for correct duty classification then falls to the venue. One member highlighted that a firkin or keg sold to an individual for personal use or a private event would not qualify as draught for duty purposes, regardless of size. Members also flag uncertainty around whether small-pack formats can ever qualify for draught duty, and advise checking **HMRC's official guidance** (gov.uk/guidance/check-if-you-can-pay-less-alcohol-duty-on-draught-products#eligible-products). There's a general caveat that HMRC enforcement is loose and inconsistent—they "leave you to do your own thing" until an audit, when classification disputes can become serious.
What is the current state of the on-premise/hospitality market and how reliable are the published statistics?
The on-premise sector is showing mixed and contradictory signals, making it difficult to assess true performance. Published statistics appear unreliable and often lack proper context. **Statistical concerns:** - Published data (e.g. Restaurant Online reporting 5.2% growth in March 2024) is "not comparing apples with apples" according to members—Easter timing distortions and other methodological issues make year-on-year comparisons questionable - Anecdotal reports from the ground contradict headline figures; members heard claims of March being down 25% year-on-year, but this lacked supporting context - Marketing narratives from platforms and aggregators contain "a lot of hot air"—companies like Bemakers make broad claims about pan-European delivery capability, but investigation reveals they operate in only 4–5 key markets with manual fulfillment behind the scenes **Reality on the ground:** - Major operators are in visible distress: Rev's and Stonegate reported to be "in serious trouble" - Regional disparities are significant (e.g. Belfast coverage gaps noted as "painful" to navigate) - Hospitality groups are difficult to reach and engage with directly **Takeaway:** Treat published growth figures with significant skepticism. Verify claims through direct conversations with operators and regional players rather than relying on aggregated statistics or vendor marketing.