Small producers of cider and perry - establishment and relief

How do producers of cider and perry qualify for the relief?

Relief is available on cider and perry exceeding 2.8% volume but not exceeding 8.5% volume which is produced by qualifying small producers.

The relief is at a rate of 50% of the standard Alcohol Products Tax (APT) rates for cider and perry.

A producer of cider and perry will qualify for relief if:

• the total quantity of either cider or perry, or both, produced in the previous calendar year was not more than 10,000 hectolitres
• the producer is independent of any other producer of cider and perry
• and
• the premises is located apart from the premises of another producer of cider and perry.

A producer of cider and perry will also qualify if less than 50% of the cider and perry produced in the previous calendar year was under:

• licence
• franchise
• or
• contract

to another producer of cider and perry.

If you own two or more producers of cider and perry, you are treated as a single producer of cider and perry. You will qualify for this relief so long as the total quantity of the cider and perry produced in the previous calendar year by those producers does not exceed 10,000 hectolitres.

Any cider and perry which you produce under licence, franchise or contract for another producer of cider and perry should be included when calculating your annual production quantity. Usually, cider and perry produced under licence, franchise or contract for another producer of cider and perry does not qualify for relief.

However, there is an exception to this whereby cider and perry produced for another producer of cider and perry under licence, franchise or contract will qualify for the relief if:

• each of the producers of cider and perry satisfies the criteria set out above
• the quantity of cider and perry produced by each of the producers did not exceed 10,000 hectolitres
• and
• the total quantity of cider and perry produced by all the cider and perry producers involved did not exceed 15,000 hectolitres in the previous calendar year.

‘Cider and perry’, as defined in Irish legislation, means a beverage exceeding 1.2% volume, but not exceeding 15% volume, obtained from the fermentation of apple or pear juice and without the addition of:

• any other alcoholic beverage
• or
• any other beverage or substance which imparts colour or flavour and which, by such addition, in the opinion of Revenue, significantly alters the character of the product.

This means that the relief does not apply to fruit-flavoured cider and perry such as raspberry, blackcurrant or mixed fruit ciders. For excise purposes, beverages like these are classified as ‘other fermented beverages – other than cider and perry’.

Further information on the total annual production threshold applicable to independent small producers of alcoholic beverages can be found in the Explanatory Notes published by the European Commission in December 2021.

Next: How do you claim the relief?