1. Lower alcohol content
This is the specialized site Beverage department which details the conflict. Originally, the Bacardi-Martini group decided to lower the alcohol content in its bottles of Get27, from 21 to 17.9%. This last figure is not insignificant. It makes it possible to pass just below the threshold of 18% from which social security contributions increase for alcoholic beverages.
Indeed, each manufacturer must pay 579.96 euros per hectolitre of pure alcohol for drinks that contain more than 18% alcohol. Below this figure, the contribution increases to 48.97 euros per hectolitre. What motivate manufacturers to sacrifice a few degrees to make large savings.
2. The reasons for the conflict
Faced with this situation, the Carrefour and Système U stores then asked Bacardi-Martini to pass on their savings to the price of the bottle. Negotiations took place between the different parties, but without reaching an agreement.
In September, the Rayon Boissons site calculated that this drop in the degree of alcohol led to a saving of 78 cents excluding VAT per bottle for the manufacturer. Faced with Bacardi-Martini’s refusal to lower its prices, the two large retail chains therefore took the drastic step of removing bottles of the famous mint liqueur from their shelves.
3. Precedents
In 2012, a new taxation of spirits was introduced by the government of the time. It should make it possible to generate around 340 million euros by taxing the strongest products more severely, with increases of up to 1 euro per bottle. It provides, in particular, a part dedicated to social security, which is proportional to the degree of alcohol.
Since then, several brands have decided to change their recipe to avoid or minimize the impact of this new tax. The Malibu brand took only a few months to fall below the 18% threshold. The brands Soho, Passoa, Pisang Ambon followed soon after.