Distillery, Winery & Brewery R&D Tax Credits

The vibrant and dynamic UK alcoholic drinks market, is worth 64.10bn dollars in 2023 (Statista).

However, after the disruption of the pandemic and rising prices, consumers are calling for more distillery, winery and brewery R&D to meet their changing needs.

This includes low or no alcohol, flavoured spirits, ready-mixed, healthier, sustainable and premium options (premium lagers almost doubled their market share from 2017 to 2022).

All of which creates more innovation on a process level during the crop growing, fermentation, blending, consistency testing, bottling, preserving processes and more.

R&D tax credits can offer the alcoholic drinks market an additional tax deduction of up to 130% (SME example) off all qualifying innovation spend (changing to 86% on all expenditure on or after the 1^st April 2023 (View R&D tax credit changes)).

Distillery, Winery & Brewery R&D Tax Credit Examples

Qualifying distillery, winery & brewery R&D projects must attempt to “resolve a scientific or technological uncertainty”. This is when a qualified professional cannot see a solution to a problem without exploratory testing and development.

The testing must attempt to fill a knowledge gap within the industry, and change or create a new product, process or service.

Innovative Products

Qualifying R&D product projects include the testing and development of new or modified:

Yeast or grape strains
Hop varieties and hopping techniques
Product varieties, e.g. to meet new trends, such as no or low alcohol, less sugar and flavoured spirits
Product formulas, maybe to increase flavour
Prototypes or sample batches

Innovative Process

Qualifying R&D process projects include the testing and development of new or modified:

Plant irrigation systems
Soil and rootstock processes
Fermentation and distillation processes
Filtration and straining methods
Mixing and blending techniques
Consistency testing for shelf-life, flavour, colour and aroma
Bottling, canning or keg filling processes
Bottle, can or cork designs
Automated processes
Preservative chemicals and spoilage prevention techniques
Sustainability and waste management methods
Production equipment
Bespoke back-office systems or coding

Contact Amplifi Solutions, R&D Tax Credit Specialists

Contact the Amplifi Solutions’ team for advice with your innovation and R&D tax credits

Distillery, Winery & Brewery R&D Tax Credits

Distillery, Winery & Brewery R&D Tax Credit Examples

Innovative Products

Innovative Process

Contact Amplifi Solutions, R&D Tax Credit Specialists

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