BEER DUTY & WASTAGE
A statutory consultation was undertaken after intense lobbying of the Pubs Code Adjudicator (PCA) over a 2 year period. The investigation found that companies regulated under the Pubs Code Adjudicator, routinely failed to disclose the quantity of alcohol on which duty has been paid.
They were presenting an incorrect saleable volume of draught products supplied under their tied rental proposals. The FMT shown was not achievable and had been inflated by the effects of wastage and sediment. This scandal is known as “72 pints”. Note, it is not exclusive to just regulated pub companies, but other firms in the pub’s sector have also been doing this.
These FMT calculations are crucial to the pub profit, as they affect both the turnover and expected profit margins (i.e. the price per pint and achievable gross profit). They are possibly the most critically important factors when considering new pub rent proposals, or how much to bid for a rent.
The consultation has long since concluded and the statutory guidance has been published here.
If you are worried that you are not making enough profit from your wet sales and or can never make sufficient gross profit then this service is for you.
With our Wastage and Sediment Service, the PAS can help pubs identify losses and uncover non-compliance in wastage and sediment using our custom-built software (see sample below of £10,000 being hidden). If you would like us to check if you are a victim of “72 pints”, then please submit an inquiry via this link, which will take you to our contact page and we will be in touch as soon as possible.