A brewery in the UK has developed an innovative way to save money on the taxes it is required to pay on the beer it produces: Backwash.
In the UK, breweries are required to pay a tax called a “beer duty” on every barrel of beer that leaves the facility. But Marston’s — a brewery in the West Midlands region of England — has begun to claim a refund on the “dregs” found in the bottom of kegs and casks that are returned to the facility.
Bottom of the Barrel Savings
Known as “ullage” over and “backwash” in the US, this unconsumed beer is usually considered to be unfit for consumption. But Marston’s has broadened the definition of “beer” by counting it the leftover product found at the bottom of its returned barrels as actual, taxable product.
Because taxes must be paid on all beer leaving any brewery, it makes perfect sense for Marston’s to reclaim any duty on beer which is returned, according to the materials handling website Hub.
When kegs are returned to the brewery, before they are sterilized prior to being refilled with fresh beer, any remaining product in the container is emptied and collected in a special storage container known as an “ullage vessel”. This container is then weighed so that the volume can be measured. Marston’s then applies for a credit on the beer duty previous paid.
Requires Specialized Equipment
The entire system is facilitated by special machinery developed by Precia-Molen, a manufacturer of weighing instruments and systems based in Privas, France. The company built a new stamped ullage “return” vessel and replaced all indicators on the holding vessels. A platform scale also was installed to work with the ullage vessel.
Basically, the Marston ullage vessel is a tank on top of load cells which is calibrated for trade use. Because the readings must always be 100% accurate so that the proper tax credit can be requested, they are recalibrated on a regular basis by Precia-Molen technicians.
Precia-Molen redesigned the ullage vessel to incorporate four load cells. The setup has four oversized foundation plates which facilitate the regular use of a force callibration rig to recalibrate and complete the reverification of the vessel for trade use. A model I200 weight indicator was also supplied to complete the installation.
Beer Drinkers Also Must Pay
The beer duty is not just a tax paid by brewers. Consumers of beer in the UK also must pay a tax on every pint of beer they hoist. The amount of the tax depends on the level of alcohol in the beer. The higher the alcohol level, the higher the beery duty.
Lawmakers in the UK recently touched a nerve with voters when they voted to reduce the beer duty by 1 pence per pint. The tax cute waas the second in two years. The move roused the ire of health advocates who said they feared it would lead to increased alcohol consumption in the UK.