Major brewer to make beer weaker from next week due to new rules

A brewing giant is making one of its lagers weaker from next week under new rules imposed by Labour.

Heineken will produce its popular Sol product with an alcohol by volume (ABV) slashed from 4.2% to 3.4% from Tuesday (February 25).

First brewed in Mexico and now at a factory in Zoeerwoude in the Netherlands, Sol became part of Heineken’s portfolio in 2010.

One reason for the change is to lower the amount of duty which needs to be paid for the lager, which was made possible when the previous government lowered the duty for booze products between 1.3% and 3.4%.

Other cost pressures have helped bring the strength down on some beers, according to The Sun. This includes Asahi’s Dark Star Brewing Co.’s Hophead which has seen a reduction from 3.8% to 3.4%.

The lower tax rate on products with weaker alcohol volumes also saw reductions to Stella Artois, Foster’s and Old Speckled Hen, among others.

Heineken said earlier this month that it sold more beers around the world in 2024 as demand for premium brands grew.

The brewing giant warned of persistently weak consumer sentiment in Europe, but said it expects profits to grow between 4% and 8% this year.

It reported a 1.6% increase in the volume of beers sold across its global markets over 2024, compared with 2023, partly driven by growth for brands it labels as premium.

This included a 9% jump in volumes of Heineken, with Birra Moretti also selling well. Its Heineken 0.0% non-alcoholic beer also saw volumes grow by a 10th year-on-year.

The Amsterdam-listed company also this month hailed the launch of its Spanish lager brand Cruzcampo in British supermarkets, as well as a more than 40% jump in the volume of Inch cider sales.

Nevertheless, Heineken said pubs and bars in parts of Europe were seeing less demand after price hikes and weaker consumer confidence.

The cut to Sol’s ABV may be a move from the brewer to bring down prices at the bar and checkout to boost demand as less duty will need to be paid.

Heineken has previously warned changes in legislation on packaging set to come into force this year will lead to “significant” cost increases.

The changes mean manufacturers will have to foot the bill for making sure materials used for their packaging are recycled or recovered.

A Heineken spokesperson said: “As ever, we continue to make considerable effort across the business to deliver cost savings and drive efficiencies to keep price increases to a minimum and reduce the impact of inflation on our customers.”