Punch has announced that it will absorb the increase in duty included during this year’s Budget, meaning the prices paid by its Publicans will remain the same for the rest of 2016. Punch is the first pub company to reveal such a move.
While duty was frozen on beer, still cider, low-strength sparkling cider and spirits, duty rates on wine, made-wine at/or below 22% ABV, together with high strength sparkling cider above 5.5% ABV, will rise by RPI inflation from 21 March 2016.
In response, Punch is pleased to confirm that there will be no wholesale price increase on wine this year ensuring they are guaranteed for at least the next 12 months, while the pricing of Ready to Drink products (RTDs) will also be held at their current wholesale pricing (excluding any further duty changes).
John Healy, Commercial Director at Punch, commented: “While we were very pleased to see duty on beer and cider frozen in this year’s budget, we appreciate that the rise in duty rates for wine may be a cause for concern for many. With this in mind, we’ve taken the decision to absorb these costs ourselves, ensuring our Publicans are not affected in any way. We are committed to supporting our Publicans wherever possible and this is a further example of this.
“For those Publicans keen to use this opportunity to reassess their wine offering, we will shortly be publishing our new wine brochure incorporating our most popular lines and featuring some new and exciting additions to the range.”