Grolsch drops alcohol content amid sales slump and tax rules on weaker brews

Grolsch Premium Pilsner has had its alcohol content slashed to 3.4% alcohol by volume (abv) in the UK amid shrinking sales and discounted tax rules on weaker brews.

The pilsner beer, which is sold with a 5% abv in Europe, had already been relaunched by Asahi in the UK with a abv of 4% in 2020.

Now, amid a further fall in demand, bosses at Asahi have again slashed the alcohol content carried by the beer.

The decision will reportedly save Asahi UK 23p in excise duty per 440ml can of Grolsch sold.

Speaking to The Grocer, Asahi said it had "learnt a lot" about "consumer preferences and evolving consumption trends," and that the brewer is "confident this still delivers an excellent premium beer that will appeal to a broad range of consumers."

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An Asahi spokeswoman said: “Following much analysis, we decided to reformulate Grolsch to a new abv of 3.4%, which went into market earlier this year.

“As with many companies operating complex supply chains, we have experienced an extremely challenging economic climate over recent years.

"While we have seen relief from some of the energy and raw material highs of recent years, inflation remains high across the markets where we operate, with many costs still exorbitantly high. Achieving sustained profitable growth in this environment is difficult.”

ITV News has approached Asahi for comment.

Last year, the government rejigged how alcohol was taxed and introduced a number of increases for higher abv drinks and cuts for lower abv products.

And, just over a week away from the new Labour government's first budget, it has been reported that Chancellor Rachel Reeves could make further changes to the way alcohol duty is calculated.

Alcohol duty rises each year in line with inflation, unless the chancellor makes the decision to freeze it.

Currently facing down a £22 billion blackhole, Reeves has said she is prepared to make tough decisions when concerning the public purse strings - and forecasts that a raise in alcohol duty would raise an extra £800 million could feature as part of Reeves' plans to restore public finances.

Potentially further incentivizing brewers to lower alcohol content while keeping prices the same, a phenomenon that has been dubbed "drinkflation".

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