Firm has 'a lot of interest' in new flexible alcoholic friend

Alcohol base derived from fermented fruit can be used in ready-to-drink products

Contract drinks manufacturer Universal Beverages claims to have broken new ground in the alcoholic drinks sector with the development of a novel, fruit-derived alcohol base for ready-to-drink products produced via fermentation, not distillation.

The ingredient - which can be produced from apple, pear or grape concentrate, glucose or even malt extract - has attracted interest from "all over Europe", claimed md David Hepworth, who is working with a legal firm to file a patent application for the concept. "In most countries an alcoholic beverage made from a fermented source attracts less duty than one made from spirit. It is therefore more economical to produce."

Its high alcohol content makes it "more economical to use as less is required in the final product". A bespoke filtration process stripped out a lot of taste and colour, making it flexible, he added. However, "it still contains natural fermentation components so has a slight alcoholic character that would complement most drinks"

The firm was now producing trial batches and conducting shelf-life testing, he said.

Launched in December 2007, Ledbury-based Universal Beverages has been growing fast over the past 18 months, and is on track to increase staff from 200 to 300-350 over the coming year, said Hepworth. "We're hoping to deliver turnover of £60-80M in [calendar year] 2010."

A second glass bottling line had just been commissioned, while a new high speed canning line was due to be commissioned in early November, he added.

The weakness of sterling had made manufacturing products in the UK more appealing to some customers in recent months, said Hepworth. However, contracting out production also reduced risks for domestic firms keen to diversify or expand but lacking the volumes or finances to risk the capital expenditure associated with manufacturing in-house.

Scottish & Newcastle (S&N) and Q Group originally set up Universal Beverages as a joint venture to produce cider for S&N subsidiary Bulmer's under a 15-year contract. However, it has since built up a contract manufacturing operation to produce and pack a broad range of other products from apple juice concentrate to soft drinks.