Several described a burning sensation as they drank the cider. Many said they believed the drink produced far more stomach problems than other forms of alcohol. Other shopkeepers were prepared to sell below the prices on the shelves to these very regular customers." "Some of the small shops were willing to give them credit if they were sure of payment when their welfare payments were received. "Most have an incredibly detailed knowledge of the price variations," Goodall pointed out. Tony Goodall, the report's author, estimated that about half the white cider drinkers he interviewed claimed to drink more than three litres a day. "Nowadays people won't drink ordinary-strength ciders, they don't see it as strong enough, basically," he said. Tony Waters, a long-serving manager at a Thames Reach hostel, said price had been the major factor in homeless people migrating from weak to strong cider in recent years. The difference between the two drinks means retailers can sell strong cider far more cheaply than strong lager and still enjoy large profit margins.Ī spokesman for Bestway, the cash-and-carry operator that owns the White Ace brand, confirmed it "sells very well", but declined to give figures.Ĭider contributes more than £1m a day to the exchequer, but it is taxed at a lower rate than other alcoholic drinks to protect the traditional cider industry, primarily to allow for investment in orchard development.įollowing the rise in alcohol tax in the budget, cider up to 7.5% in strength attracts a lower rate of duty at £35.87 per hectolitre (100 litres) than standard 4% beer or lager that attracts a duty of £74.28. By contrast, a super-strength lager such as Kestrel sells for £1.20 a can, of which the Treasury takes £1.04, leaving 16p. The report reveals that the Treasury takes 32p in VAT and duty on the sale of an 85p can of White Ace, leaving a remainder of 53p. With cider, you put a little bit of lemonade in it with the first one and then you can start knocking it back." "Most drinks are quite hard to drink, like whisky and stuff like that. "It's because it's so cheap and it has a very quick effect on you," said Gordon Cowper, 52, a recovering alcoholic who now works for the homelessness charity Thames Reach in London. It may be cheap, but white cider, the drink of choice for many homeless alcoholics, commands big profits.Ī new report by the charity Alcohol Concern suggests profit margins on white cider are significantly fatter than those on other alcoholic drinks, thanks in part to tax breaks designed to help traditional British cider makers.Ĭans of brands such as White Ace, Carbon White and White Star sell for as little as 59p.