Independents toast cut in excise duty

By Ian Guider

Finance Minister Brian Cowen yesterday announced that excise duties for independent breweries would be halved, a move that will cost the Exchequer just €1 million a year.

The Independent Craft Brewers Network (ICBN), which represents the small group of Irish producers, said its members have been priced out of the market in recent years and the reduction will save many jobs.

Barbara-Anne McCabe, a spokesperson for the ICBN, said her members were delighted by the move, which could lead to a fall in the price of their pints.

“For our beers, the excise duty is 56 cents on the pint. So that will be cut in half. We have been charged out of the market until now and we will be able to compete with the big breweries.

“The craft brewers produce premium niche products in small batches, so naturally cost more, but we can now compete.”

The ICBN represents a total of 12 microbreweries across the country, including the Porterhouse in Dublin and the Kinsale Brewing Company.

Ms McCabe said that for years her members had to rely on exports to make money, but they could now look to grow their share of the Irish drinks market.

“This means a lifeline for a struggling sector in Ireland. It will allow for each existing craft brewery to invest in marketing their product,” she added.

“A lot of craft brewers have had to let people go and were forced to rely on export markets where they could avail of lower excuse duties. This will mean the difference between fighting to survive and be able to grow in future; it will mean more companies setting up craft breweries, which is good for Ireland.”