Loophole Fuels Supermarket Profits at the Cost of People’s Health
UK supermarkets, including Tesco, Aldi, and Lidl, are exploiting a longstanding tax loophole to sell high-strength cider at extremely low prices, sparking public concern about harmful industry practices fueling alcohol harm. According to a report by The Guardian, these supermarkets benefit from a tax break intended to support apple production, allowing them to market cider with up to 7.5% alcohol by volume (ABV) at prices equivalent to soft drinks.
For instance, Tesco sells a litre of Compton Orchard cider (4% ABV) for just £1, the same price as its own-brand apple juice. The price of that juice has increased by 70% since 2020, while the cider is now 2.4% cheaper than its 2020 equivalent. Meanwhile, Frosty Jack’s, a 7.5% ABV cider, has risen in price by just 5.3% (from £4.89 to £5.15), despite a 26% rise in inflation over the same period.
Cider Escapes Proper Taxation Despite High Alcohol Content
UK tax law permits cider with an alcohol strength between 3.5% and 8.5% ABV to be taxed at only £9.67 per litre of pure alcohol.
That is less than half the rate imposed on beer, which is taxed at £21.01 per litre. This discrepancy allows producers to manufacture high-alcohol content, low-cost cider products with minimal tax payment required, despite the severe health and social consequences that result from wide availability of high-strength alcohol.
Alcohol Change UK has condemned the exploitation of this so-called “super-strength subsidy,” stating that large-scale producers use minimal concentrated apple juice just enough to meet legal cider requirements and secure tax breaks. Supermarkets stock these products aggressively and sell them at prices affordable to children and young people, fuelling alcohol-related harm across communities.
CSR Claims Unmasked by Predatory Pricing
The reality of the predatory pricing practices exposed by The Guardian also casts serious doubt on the sincerity of recent Corporate Social Responsibility (CSR) initiatives launched by alcohol industry giants. According to Drinks Retailing, in July 2025, over 100 global companies, including alcohol producers, supermarkets, tech platforms, and e-commerce firms, joined the Global Standards Coalition (GSC), coordinated by the International Alliance for Responsible Drinking (IARD). The initiative claims to promote “responsible” alcohol use through measures such as staff training and digital tools to protect minors.
However, these CSR claims run counter to the evidence on the ground in UK supermarkets.
While the GSC claims to promote “moderation” and “responsible” marketing, retailers such as Tesco, Aldi, and Lidl deliberately pursue profit maximisation from ultra-cheap, high-strength cider, threatening people’s health. This contradiction unmasks the reality of Big Alcohol’s CSR ploys: it is a public relations that distracts from the real and evidence-based actions that are needed to protect people from alcohol harms caused by the alcohol industry.
Communities Bear the Brunt of Irresponsible Alcohol Industry Practices
Ash Singleton of Alcohol Change UK highlighted the disproportionate harm affecting working-class areas, noting that unsafe streets, pressure on the NHS, and early deaths are tied to this irresponsible and predatory pricing practice.
In contrast, the price of a pint of cider purchased in a pub has increased by 15.5% since 2020, from £3.88 to £4.48, according to The Guardian. Yet in supermarkets, two litres of own-brand cider from Aldi or Lidl still costs just £1.99, significantly undercutting British pubs.
Research adds that high availability and affordability of alcohol drive harm across multiple domains. Evidence shows that the global alcohol industry is systematically shifting responsibility onto communities while profiting from predatory practices that cause harm.
In fact, studies have warned that alcohol harm costs societies trillions in healthcare, lost productivity, and social impact. For example, a compelling study estimates that the total annual cost of alcohol harm to England amounts to £27.4 billion. The most affected are people with alcohol use disorders and children from families with alcohol problems.
Government Urged to End Industry Tax Breaks and Prioritise People’s Health
Alcohol Change UK has written to Public Health Minister Ashley Dalton urging an immediate review of the alcohol tax structure. The charity points out that the current system enables multinational alcohol corporations to claim tax benefits intended for small, local cider producers.
Mr Singleton called on the government to eliminate the tax loophole and introduce safeguards that align taxation with alcohol strength and harm, as per The Guardian reporting.
It is unacceptable that the alcohol industry continues to push the cost of harm on to communities and stretched NHS and police services, while cashing on tax breaks to do so”
Ash Singleton, Alcohol Change UK
The British Retail Consortium and Tesco responded defensively. Tesco claimed compliance with pricing laws and argued that its 4% ABV cider is comparable in strength to lager. However, public health advocates emphasise that this claim ignores the cumulative harm caused by selling high-strength alcohol at such low prices and in such large volumes.
A Clear Case for Reform
Studies continue to illustrate the public health benefits of modern alcohol taxation based on potency of the alcohol product.
The widespread availability and affordability of high-strength alcohol products at near-soft-drink prices reflects the urgent need for evidence-based policy action. Ending the cider tax loophole is a critical step to prevent further harm and ensure the alcohol industry pays its fair share for the harm and costs their products and practices cause.
A proper alcohol tax system needs to ensure supermarkets do not continue profiting at the expense of people’s health, while communities and healthcare systems bear the cost.