Popular beer brands hit with ‘drinkflation’ as brewers look to cut costs

Popular beer brands Fosters, Spitfire, Old Speckled Hen, and Bishop’s Finger are among the alcohol ranges that have been hit with ‘drinkflation’ (shrinkflation) over recent months, as brewers look to cut costs amid rising inflation.

According to a report from The Telegraph, the term has been coined ‘drinkflation’ to signify where some of Britain’s best-known beers are being made weaker through its alcoholic contents.

Foster’s, which is owned by Dutch brewing giant Heineken, was reduced from 4% to 3.7% ABV this year, saving Heineken 3p of tax per can.

Meanwhile, Shepherd Neame brewery has cut the ABV of its best-selling Spitfire ale from 4.5% to 4.2%, saving it 3p on each 500ml bottle. Additionally, its Bishop’s Finger ale has weakened from 5% to 4.8%, saving 2p per bottle on tax.

Also, Greene King’s Old Speckled Hen is now made at 4.8% ABV rather than 5%, taking 2p off the tax bill of each bottle.

Brewers are cutting the alcohol content of their beers as a way to save on tax, as further costs are imposed based on the percentage of alcohol in a beer.

Although the amount of tax saved on each can or bottle is minimal, it can add up to huge sums because of the very large beer volumes major brewers sell.

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It comes as shrinkflation hits a wide variety of food and drink brands across the country, such as Lurpak butter, Mini Cheddars, and Magnum ice creams.

A Shepherd Neame spokesman told The Telegraph: “In line with other breweries, and most food and drink producers, we have seen significant increases in the cost of raw materials, energy and energy-related products such as glass.

“These increases are well above the headline rate of inflation. Whilst we are doing everything possible to mitigate these costs, we have had to increase the price of all our beers.”

A Greene King spokesman said that cutting alcohol content was a way to mitigate “significantly increased” costs.

They commented: “It lowers the duty we pay without noticeably affecting the beer’s flavour, and helps offset some of the rising cost of brewing our beers.”

Industry consultant Bill Simmons added: “The problem is that the brewers have got nowhere to go. They can’t change the pack size, because that is a massive operation – the only course of action open to them is to reduce the ABV.”