The SOS Campaign

Research to address the question: How does the proposed Minimum Unit Price for alcohol compare to the current price of traditional cider sold direct from the barrel at the cider maker’s farm gate?

Tue, 01 May 2012 02:57:47 -0400

Proposed Minimum Unit Price compared to price of traditional cider sold from the barrel by the maker at the farm gate. Prepared by Matthew Veasey, Nook’s Yard Ltd. www.nooksyard.com. 28th April 2012 01606 89154

Background

The “Save Our Scrumpy” campaign seeks an exemption from the Minimum Unit Price [MUP] for retail sales of traditional cider from the barrel at the farm gate. The current suggested minimum price is 40p per unit [PPU] of alcohol, although figures of 45p or even 50p have been mentioned. It is believed within the traditional cider making community that an MUP at this level will have a significant negative impact on traditional cider makers. It is predicted an enforced minimum price of double the current retail price will more than halve the volume of cider sold. As a result, many of these cider makers, many of whom have been producing cider at their farm for generations, will be have very little option but to close. A further consequence would be that many traditional orchards will be grubbed up. It is feared part of the country’s heritage will be lost forever.

Our survey

There is a view that an MUP of 40p should have only a limited impact on the retail price of real cider at the farm gate. The contrary view, held by those who are directly involved in traditional cider making in Somerset or those who have first-hand experience and cider makers themselves, is that an MUP of 40p is a significant increase on the current retail price at the farm gate. We carried out a simple survey of prices of cider sold retail from the barrel, at the farm gate by traditional Somerset cider makers. The aim was to collate basic pricing data to confirm or refute either view. As this is a very simple survey, any result would need to be significant in order to support one view or the other.

Results

We telephoned or visited 19 traditional cider makers in Somerset. With just one exception, all of the cider makers we spoke to quoted us a price for 4 or 5 litres (1 gallon) of farmhouse cider which equated to a PPU of less than 40p.The average PPU was 27p, with a range from 21p to 39p. If the customer provided their own container, quite a usual occurrence in Somerset, the PPU reduced to an average of 24p; the highest PPU now being 30p, and four makers selling at a PPU of 20p or less. Considering all retail sales (in a container provided by the maker or as refills into customer’s container) over three quarters of makers had a price which gave a PPU below 30p, with half the makers selling at a PPU below 25p.

Conclusions

1) A majority of traditional cider makers in Somerset appear to sell cider from the barrel at the farm gate at a price below the suggested Minimum Unit Price of 40p.

2) The average PPU price is nearly a third less than the suggested Minimum Unit Price of 40p. Over three quarters of cider makers are selling at a retail price that is below a PPU of 30p and nearly half are selling at below 25p.

3) These results strongly bring into question any view that a Minimum Unit Price of 40p would only have a limited impact on the retail price of real cider at the farm gate, at least with respect to traditional cider making in Somerset.

4) The smaller and less familiar makers tended to charge a lower farm gate price. This suggests any MUP may affect them more than the larger makers.

5) It should be remembered that cheaper ciders can be found in Cash and Carries and discount supermarkets – a 2litre bottle of Tesco “Everyday Value Cider” has a PPU of 21p. Proposed Minimum Unit Price compared to price of traditional cider sold from the barrel by the maker at the farm gate.

Prepared by Matthew Veasey, Nook’s Yard Ltd. www.nooksyard.com

28th April 2012 01606 891541

Methodology

Between 23rd and 26th April 2012, we tried to phone or personally visit, every cider maker on a published list of Somerset cider farms. We excluded “factories” such as Matthew Clark plc, Brothers Drinks Ltd and

Broadoak Cider Co. See http://www.somersetcider.co.uk/somerset_farmhouse_cider_farms.html

If contacting by phone, we said we were visiting relatives in the area and wanted to visit their premises and buy some farmhouse cider direct from them. We asked for the price of a 4 or 5 litre container of cider, served from the barrel. We also asked if there was a different price if we brought our own container. No mention was made during the phone call of the Minimum Unit Pricing issue

By multiplying the volume sold by the appropriate percentage alcohol, we obtained the number of units of alcohol. The price quoted was divided by this number of units to obtain an equivalent Price per Unit [PPU]. If not stated, the percentage ABV was assumed to be 6%, which seems typical. However all PPUs calculated as part of this research would be nearly 15% lower (or around 4p on average) if the percentage ABV was higher at 7%. i.e. if the results are significant assuming 6%, they will be even more so if the actual ABV turned out to be higher. We excluded from the analysis any cider maker who told us they only sold wholesale, or only sold bottles.

About Nook’s Yard Ltd

We are a small cider maker based in Cheshire. We do not sell retail from the farm gate. As such, we believe any Minimum Unit Pricing will not directly affect us. Therefore this research has not been carried out with any intention to promote our own financial interests.

Our cider maker, Matthew, lived in Somerset for over 20 years and his closest family still live near Cheddar and Taunton. He gained his interest in cider making from the traditional farms around Cheddar and Wells. From his background in business, he recognises the detrimental impact MUP could have on that area’s heritage. It is for this reason he has focussed this initial research on Somerset. This is not to say that other small cider makers who sell from the farm gate in other areas of the country may not also be impacted by the MUP proposals. Clearly further work is required. However, given the apparent wider misunderstanding surrounding the application of MUP to traditional cider makers, it was felt more appropriate to concentrate on the areas where familiarity exists, rather than speculate without knowledge of the specifics.

A concerned customer on how MUP will 'rip the soul' from the industry

Mon, 23 Apr 2012 08:44:39 -0400

Dear Mr.Temperley,

Wonderful to see that you’ve made the front page of the Times !

As a customer of 25 years - when you only sold your ciders and not the ‘
posh’ stuff you have now branched out to - I was delighted to read of your
families defence of the rural cider industry. You’re absolutely right, there
is a
’ mystique’ about it. I have visited your farm in all weathers, rang your
shop bell, waited an eternity for someone to appear ( could have nicked half
your shop some times ) and then had my containers filled, sometimes by
strikingly beautiful young ladies, other times by large, grubby, elderly
gents, and , if I really hit the jackpot - your good self ! I’ve then
squelched back through the mud hounded by your barking dogs and driven back
either the short trip to Glastonbury or onto West London content that I have
a unique, living product on board which will give great enjoyment when drunk
amongst friends.

This bloody government have got to be shown that a blanket minimum cost for
alcohol will indeed rip the soul from your and many other cider farms. The
Times article appears very sympathetic to our cause and I wish you all the
very best in your efforts to find some exemption from this ill thought out
scheme. Perhaps if you dressed as a Muslim cleric, grew a long beard and
demanded your basic human right to carry on your daily business you would be
treated with a deal more respect!

Very Best Wishes,

Confusion cleared up

Sat, 21 Apr 2012 04:56:00 -0400

Us cider makers do not rely on selling cider wholesale if we did there would not be a problem. We do however rely on selling cider draft from the barrel. THIS IS NOT WHOLESALE. Also we are worried about the impact of the minimum pricing on all cider makers across the country not just those of us in the West.

Cider with Roguery: alcohol pricing 'will kill rural mystique'

Sat, 21 Apr 2012 04:36:00 -0400

THE TIMES front page news. “a new price revolt is fermenting”

Politicians take note

Bill Bradshaw writes about the grim reaper that is MUP

Thu, 19 Apr 2012 10:10:38 -0400

Bill Bradshaw writes about the grim reaper that is MUP

A quote from the owner of The Somerset Cider Brandy Company

Wed, 18 Apr 2012 06:26:00 -0400

“We have spent the last four years in Brussels, campaigning to protect Somerset Cider Brandy and have been treated with great consideration and respect by endless committees. We now have legal protection because they recognised the importance of Somerset Cider Brandy to rural Somerset. It would be a terrible indictment of the UK political system if it should turn out that Brussels showed more care and concern about rural England than Whitehall”

Julian Temperley and South West cider farmers describe how the...

Wed, 18 Apr 2012 03:09:27 -0400

Julian Temperley and South West cider farmers describe how the MUP will affect farmers

Look at the facebook page to see more of Bill Bradshaw’s...

Tue, 17 Apr 2012 09:04:00 -0400

Look at the facebook page to see more of Bill Bradshaw’s wonderful cider images.

http://www.facebook.com/SaveOurScrumpy?ref=tn_tnmn

Photos Bill Bradshaw

iamcider.blogspot.com,

billbradshaw.co.uk,

07957 195 699

The South West cider Association's Opinion on MUP

Tue, 17 Apr 2012 03:59:50 -0400

The South West of England Cider Makers’ Association is seriously concerned about the potential damage the Government’s proposed minimum unit pricing (MUP) for alcoholic products will cause to traditional West Country cider makers, their customers and the rural economy in general. Traditional cider makers and their customers are not part of the problem that the Government wishes to address with this policy and they would be unfairly penalised by the policy. Cider is an important part of the rural economy in the South West, with makers investing in orchards with an expected life of 50 years or more and creating long term sustainable employment. We urge the Government to carefully consider these issues before making any decision that might damage our industry.

An interesting article on cider by James Crowden

Sun, 15 Apr 2012 05:08:48 -0400

An interesting article on cider by James Crowden

Why is it that draft cider should be exempt?

Sat, 14 Apr 2012 04:38:40 -0400

Because people have been asking we want to clarify why cider draft from the barrel should be exempt from the minimum pricing. For hundreds of years draft cider has been bought from over 500 cider farms in the Westcountry (and elsewhere). It is cheaper than cider bought from the supermarket because it is not bottled (you buy it in your own containers) and because is not pasteurised and therefore lasts only a week. If it were bottled and pasteurised or sterile filtered so you could buy it in a supermarket then the price would be relatively high and therefore we are not worried about bottled tradtional farmhouse cider only the stuff from the barrel. The proposed law is there to catch cheap alcopop drinks which cost next to nothing to make and bottle. The traditional sale of draft cider is something which this law will affect and the government has not considered.

Please sign this petition. 100,000 signatures and we will get a debate in parliament

Thu, 12 Apr 2012 15:27:01 -0400

Please sign this petition. 100,000 signatures and we will get a debate in parliament

Rodger Wilkins in his cider house. Interview coming soon. In the...

Thu, 12 Apr 2012 15:18:00 -0400

Rodger Willkins

Rodgers customers discuss politics

Rodger Wilkins in his cider house. Interview coming soon. In the meantime help us by signing the petition

Master cider maker Tim Stoddart in his cider shed. A video link...

Thu, 12 Apr 2012 15:14:54 -0400

Master cider maker Tim Stoddart in his cider shed. A video link for the interview is coming soon.

Julian and Di Temperley at Burrow Hill cider.

Thu, 12 Apr 2012 15:05:54 -0400

Julian and Di Temperley at Burrow Hill cider.

Please sign this petition. 100,000 signatures and we will get a debate in parliament

Thu, 12 Apr 2012 08:10:37 -0400

Please sign this petition. 100,000 signatures and we will get a debate in parliament

Frank Nash at his farm. The oldest cider maker in the UK tells...

Wed, 11 Apr 2012 15:37:25 -0400

Frank Nash

Frank Nash

Frank Nash

Frank Nash

Frank Nash

Frank Nash

Frank Nash

Frank Nash

Frank Nash

Frank Nash

Frank Nash at his farm. The oldest cider maker in the UK tells us that if the minimum pricing raises the price of his draft cider from £4.50 a galleon to £11.20 a galleon his customers will disappear and like his neighbours he will be forced to grub out his orchards.

Frank Nash and Julian Temperley. Two of the West Countrys famous...

Wed, 11 Apr 2012 15:29:16 -0400

Cider makers discuss politics

Julian Temperley of Burrow Hill Cider

Frank Nash and Julian Temperley. Two of the West Countrys famous cider makers. The oldest and the proprietor of Burrow Hill Cider and the Somerset Cider distillery. Julian says if the proposed law comes in ” The mystique will be torn out of the heart of cider and the damage will be far greater than people can imagine. It would even affect a £50 bottle of Somerset Cider Brandy”

Paul Chant in his cider house. Paul says his customers are all...

Wed, 11 Apr 2012 15:16:45 -0400

Paul Chant in his cider house. Paul says his customers are all well into their thirties and past the age of binge drinking. His stalwart customers he believes have an average age of 60 and are not the binge drinkers the proposal is designed to tackle. The proposed law will be devastating for him and if he is forced to more than double the price of his draft cider then he believes his customers will disappear and he will stop cider making altogether.