An 11% tax on ready-to-drink beverages such as Bacardi Breezer has hit the profit margins of Bermuda-based drinks group Bacardi.
According to the Sunday Telegraph, a letter sent to Bacardi’s shareholders said net profit to March 2003 fell 14 per% to $390m (£234m) and blames the decline on the 11p-per-bottle duty increase on alco-pops imposed by Chancellor, Gordon Brown in his Budget - dubbed his "nightclub" tax.
The paper said sales of Bacardi Breezer helped Bacardi to a record turnover of $3.1bn for the year, but the impact of higher UK tax hit reduced the company's profit by $66m.

Philip Morris, the maker of Marlboro cigarettes could face a lawsuit from US wholesalers following the introduction of a new three-tier system of discounts, according to how much of a wholesaler's sales are accounted for by Philip Morris brands.
The Financial Times reported that 16 wholesalers have launched a lawsuit in a federal court in Tennessee alleging that Philip Morris's Wholesale Leaders 2003 programme constitutes “price discrimination and attempts to monopolise”.
Philip Morris will sell cigarettes at different prices to wholesalers with the best deal reserved for distributors where Philip Morris brands constitute up to 49.9% of their sales.