Rating Manual section 6 part 3: valuation of all property classes

Section 345: distilleries

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1. Market appraisal

There are currently less than ten Distillery hereditaments identified by SCAT code 087S in the Rating List. There are a much larger number of “micro” or “craft” distilleries in general industrial buildings which may not have been picked up as there will be little (if any) specialist adaptation and no rateable P&M. These should remain as a Generalist class with SCAT code 096G. Research suggests there are actually 213 registered distilleries in the UK, although a large number of these are located in Scotland, and a significant number of these nationally will be micro or craft distilleries.

Both nationally and globally, the demand for distilled spirits has increased over recent years, with particular growth in the UK in 2013 and 2014 for craft distilled products as well as investment from larger established distillers. Spirits are becoming especially popular with younger drinkers and this trend is expected to continue.

Whisky (which is mainly produced in the Scottish distilleries), vodka, flavoured spirits, rum and gin dominate the market share of UK distilled spirits.

There is no rental evidence for distilleries .

2. Changes from the last practice note

There was no 2010 list practice note for this class of property.

3. Ratepayer discussions

There have been no discussions with ratepayers.

4. Valuation scheme

There is no full scheme of valuation for this class and therefore valuation will be by direct comparison with other similar industrial properties. The method of valuation for this class will usually be a rental approach based on the prevailing local industrial tone.

In addition, separately valued plant and machinery is to be assessed on a contractors basis in accordance with the VOA Cost Guide.