As a general rule, British Beers and Lagers are the most common beverages found at food and drink markets in the British Isles totalling nearly 2,000 microbreweries throughout the land. Cider makers are currently recorded at under 500 and with as few as 171 wineries the brewers certainly take the lead but there are also many other options in the world of drinks. Distilleries are also becoming more and more popular with Gin, Whisky, Rum, Vodka and even Pastis distillers joining the alcohol selling charts. There are now 563 registered distillers in the UK, a 28% rise since 2020.
| Product | Number (±) of UK Producers – 2021 |
|---|---|
| Beers and Lagers | Less than 2000 |
| Distilleries | 563 |
| Ciders | 480 |
| Wineries | 171 |
Selling Wines, Beers, Ciders and Spirits is an extremely popular choice of business and has a good profit margin. Bottles do eat into your profit considerably though so study price lists carefully. You will usually have to purchase a day licence to trade on a market, known as a Temporary Event Notice (TEN), or sometimes the market operator buys one for the whole market and you don’t need to.
There is a lot of regulation surrounding the making and selling of alcohol in the UK so professional advice and research is recommended. Look at the Government website for the latest legislation and duty rules and rates.
The downside of selling alcohol may well be the paperwork involved but there is a huge upside. Not only from a profit point of view, but it is a very social business to be in. At any market or festival that we have attended there are always crowds of happy revellers around the drinks supplier, for obvious reasons! And of course the happier the customer becomes the more they buy! Win, win.
Not only are we seeing more alcohol vendors on our local markets with the addition of liqueurs making more of an appearance nearer Christmas but there are also non-alcoholic fruit cordials and fruit juice sellers.
Beers and Lagers
Independent microbreweries do seem to be popping up all over the place and it is very much consumer-driven. The support for local microbreweries really is amazing. When the local beer, lager or cider sellers turn up at a market their supporters also appear and seem to discuss their favourite beverages for hours! Whilst enjoying their favourite tipples, of course.
If you produce beer for commercial reasons and its strength exceeds 1.2% ABV, you must pay Beer Duty. To do this you must register with HMRC and you must also register as a brewer. While the bureaucracy is significant for alcohol sellers in the UK, it is certainly lucrative enough to do so. The general beer duty is £19.08 per hectolitre (100 litres) per cent of alcohol in the beer.
Spirits
Why have British spirits become a ‘thing’ recently? Well, the Gin Act was repealed in 2008 due to Sipsmith, a London Gin Brand, won a court case against HMRC for the right to make gin in small quantities, rather than on a huge scale as it had been. This clearly opened the floodgates for the craft spirit movement.
The high popularity of craft spirits has hugely increased, particularly during lockdown. With average retail prices per bottle of between £30-£40 and an alcohol duty of £28.74 per litre of pure alcohol, the treasury may be glad of the 2008 ruling. Long-held dreams of running one’s own lifestyle business in the countryside and high consumer demand have encouraged more to enter the sector and create new brands.
To produce spirits in the UK by distilling alcoholic liquids or by any other process, you’ll need:
- a distiller’s licence
- approval for your plant and process
- to account for and pay Spirits Duty to HMRC
If you mix spirits with anything other than water but don’t use a still, you will need a ‘compounders’ licence. This is applicable to small manufacturers who buy in neutral grain spirit (a strong vodka), blend it with water and add aromatics and resell it under their own label vodka, whisky, rum or gin. This is a way to start your own brand without needing to invest in a still or learn how to make your own alcohol – which actually isn’t as difficult as it may seem.
The recent popularity of the many new spirit businesses coming onto the market would get me worrying that the market will undoubtedly reach saturation point sooner rather than later.
Cider and Perry
There always seems to be a cider stall at the local farmers’ markets and it does seem to sell well all year round, from January to December.
If you make cider (or Perry) to sell, both you and your premises must be registered.
If you make more than 7,000 litres of cider a year to sell, and it’s more than 1.2% ABV but less than 8.5% ABV, you must register for Cider Duty with HMRC and pay duty. If you make less than 7,000 litres a year you can claim an exemption from registration of duty. An average duty here, depending on levels of ABV, is around £50 per hectolitre (100 litres) per product.
Wine
You will often find British wine sellers at a market or event and some even rival their better-known cousins in France, USA and Australia. You will not only find wines made from grapes but also fruit wines that use British grown fruits and berries. Elderflower white and red wines are famously drinkable. I remember drinking a glass of English champagne, produced by Bow-in-the-Cloud Vineyard from Wiltshire which was considered good enough to rival a Veuve Cliquot!
If you produce wine to sell and it’s more than 1.2% ABV, you must apply for a wine licence from HMRC and pay Wine Duty. With an ABV of between 1.2% and 4%, the current duty payable is £91.68 per hectolitre.
Artisan Liqueur stalls are also popular, especially around Christmas. See: https://www.wiltshireliqueur.com/
Alcohol at Festivals
People come to festivals ready for a drink. Consider this: If you have managed to secure a spot at one of the UK’s larger festivals, they say that the volume of stock you will need will be more like a lorry load rather than a van-full. However, make sure you get your audience right. Are they beer drinkers or cocktail lovers? Festivals attract different audiences, just make sure the one you choose fits with your brand’s audience.
Cordials
Fruit cordials are another really brilliant business to create and are fairly popular at festivals and events, particularly if you pair these with bought in alcohol and sell cocktails. See: https://www.hedgerowcordials.co.uk/
Mobile Alcohol Licence (TEN)
If you decide to sell alcoholic drinks at a festival or event, you will need a Temporary Events Notice (TEN). But if you hire a stall from a market operator, they may have applied for this already and you won’t need to get one. You are usually only allowed up to 5 TEN’s a year BUT if you have a Personal Alcohol Licence you are allowed to do up to 50 a year. To get the Personal Alcohol Licence, www.gov.uk have a list of accredited course providers which offer training courses. Once a course has been successfully completed you can then apply for your Personal Alcohol Licence.
Fruit Juices
Apple, Pear, Rhubarb and Blackcurrant Juices are some of the beverages that we have seen to successfully sell at a market. If you have access to free fruit, all the better!
Smoothies
With the popularity of more healthy eating and drinking, smoothies could work well as a beverage business on a stall. Bananas, spinach, apple and orange juice and a few seasonal berries, then perhaps this could be a good venture to try out?
The downside of selling anything in glass bottles does mean that your stock will be heavy to carry, breakages are more likely and perhaps surprisingly, the bottles have been known to explode in hot weather! The positives are that they are relatively easy to make (once you know how!) and that there is generally a good profit to be had.
Happy Trading, Cheers!