Taking A Bite Out Of Cider Taxation

Law360, New York (September 23, 2015, 10:23 AM EDT) -- Interest in, and consumption of, hard cider is on an upswing in the United States. The hard cider market grew by 71 percent in 2014[1] with total cider sales jumping from just $78 million in 2011 to $470 million for the 52 weeks ending Jan. 3, 2015. By comparison, retail sales of spirits increased by only 2.4 percent, sales of table wine increased by only 3.3 percent, and beer sales actually decreased by 0.4 percent. Despite the apparent boom of cider consumption, the cider industry (particularly craft brewing) is presently handicapped by outdated laws that have not yet been modified to accommodate current trends and consumer demands. Two bills are currently awaiting action in Congress that would allow cider makers to produce cider using natural ingredients without facing the possibility of increased tax liability....

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