I've mentioned the catastrophic rise in beer in 1931 before. The one that caused beer sales to slump to such an extent that government revenues fell. It had a couple of weird side-effects.
These are the details of the tax hike:
British brewing overview 1920 – 1939 | |||||
| Production (barrels) | Production (hl) | Average OG | tax per standard barrel | Net excise receipts (pounds) |
1920 | 35,047,947 | 57,358,068 | 1039.41 | 70s | 71,276,230 |
1921 | 34,504,570 | 56,468,799 | 1042.61 | 100s | 123,406,257 |
1922 | 30,178,731 | 49,389,304 | 1042.88 | 100s | 121,844,583 |
1923 | 23,948,651 | 39,193,404 | 1042.72 | 100s | 92,262,893 |
1924 | 25,425,017 | 41,609,566 | 1043.04 | 80s | 76,110,638 |
1925 | 26,734,825 | 43,753,145 | 1043.12 | 80s | 75,825,827 |
1926 | 26,765,610 | 43,803,527 | 1043.23 | 80s | 76,320,021 |
1927 | 25,100,461 | 41,078,410 | 1043.28 | 80s | 78,763,480 |
1928 | 25,435,145 | 41,626,141 | 1043.17 | 80s | 77,800,471 |
1929 | 24,608,000 | 40,272,468 | 1043.10 | 80s | |
1930 | 25,061,956 | 41,015,395 | 1042.90 | 80s | 71,254,674 |
1931 | 23,900,000 | 39,113,784 | 1042.50 | 114s | |
1932 | 20,790,812 | 34,025,411 | 1041.04 | 114s | 68,710,020 |
1933 | 17,950,303 | 29,376,748 | 1039.52 | 80s | 67,097,581 |
1934 | 20,182,308 | 33,029,558 | 1040.99 | 80s | 53,884,405 |
1935 | 20,864,814 | 34,146,520 | 1041.06 | 80s | 53,582,335 |
1936 | 21,969,763 | 35,954,835 | 1041.02 | 80s | 55,451,926 |
1937 | 22,724,450 | 37,189,926 | 1041.10 | 80s | 57,318,585 |
1938 | 24,205,631 | 39,613,967 | 1041.02 | 80s | 61,241,404 |
1939 | 24,674,992 | 40,382,105 | 1040.93 | 80s | 62,370,034 |
Source: Brewers' Almanack 1928, p. 110 Brewers' Almanack 1955, p. 50 |
The brewers didn't react as expected to the tax increase. Though, given their past actions, the government really were being a bit thick. Rather than increase the retail price, brewers cut gravities.
But they didn't cut the gravity of every beer. Some of the posher ones - like Bitter - remained the same strength. Which caused the strength differential between Bitter and Mild to expand. Take a look at Courage:
Courage Mild and Bitter in the 1930's | | | | | | ||||
Year | Beer | Style | Price | size | package | FG | OG | ABV | attenuation |
1934 | X | Mild | 5d | pint | draught | 1011.1 | 1035.3 | 3.02 | 68.56% |
1934 | X | Mild | 5d | pint | draught | 1008.9 | 1036 | 3.39 | 75.28% |
1934 | X | Mild | 5d | pint | draught | 1008.7 | 1034 | 3.16 | 74.41% |
1934 | X | Mild | 5d | pint | draught | 1010.8 | 1035 | 3.03 | 69.14% |
1935 | X | Mild | 5d | pint | draught | 1010 | 1035 | 3.13 | 71.43% |
1935 | X | Mild | 5d | pint | draught | 1011 | 1035 | 3.00 | 68.57% |
1936 | X | Mild | 5d | pint | draught | 1011.2 | 1034.7 | 2.94 | 67.72% |
1936 | PA | Pale Ale | 8d | pint | draught | 1010.1 | 1052.8 | 5.34 | 80.87% |
1937 | PA | Pale Ale | 8d | pint | draught | 1011.9 | 1051.9 | 5.00 | 77.07% |
1937 | PA | Pale Ale | 8d | pint | draught | 1012.8 | 1052.3 | 4.94 | 75.53% |
Source: Whitbread Gravity Book |
The Mild could be one of today, at around 1035. The Bitter is half as strong again at 1052.
So why is the differential so much smaller now? WW II. Simple as that. When average gravity was set at 1037, its gravity was slashed.
Curse you, Adolf Hitler …
ReplyDeleteOf course, the slump in beer sales after a big rise in tax is particularly relevant today with the neo-puritans urging a tax rise as the way to cut the alleged scourge of binge drinking. Clearly what happened in the early 1930s was that in the public bar, at least – where the working classes drank mild – the price of beer was relatively inelastic (as we A-level economists say) and sales dived when the tax went on, so the price rise hit all lower-income drinkers, not just those who drank a lot. Of course, the neo-prohibitionists KNOW higher prices will affect everubody, they're not really targeting the "excessive" drinkers, they're targeting all of us …