Wednesday, 4 February 2015

Whatever you're having yourself


Got to welcome the government proposal on minimum pricing on alcohol even as someone who does like a drink.  The sale of alcohol has changed in many years. There are more brands on the market than there were 30 years ago. There are more different types of alcohol available on a supermarket shelf.  The expression; “Lord make me sober but not yet” has a special Irish meaning.

In the last few years the alcohol content has climbed, the market has been crowded by alcopops and shots aimed at young people while female consumption of wine has increased enormously over the last 15 years.  Add to that additional alcohol the sugar and it’s easy to see how the warnings are there, not just in relation to alcohol but also sugar.  Type 2 Diabetes is on the increase because sugar consumption is increasing, often as part of their alcohol intake.  That’s the problem ultimately. Forget the tabloid stuff about teens abusing drink, or the fall out from anti social behaviour.  Ask for once what excess alcohol does to the consumer.

Let’s look at the detail. Leo Varadkar proposes a range of prices for a unit of alcohol.  The figures mentioned in the media are at the highest end of the possible range of prices mentioned.  There is a need to cut the cheap drinks out of the market.  What has passed as cheap alcohol until now was below cost selling.  In the supermarket model by cutting the price of drink you made your money off the sale of other items.  Using cheap drink gets them in the door where the margin on other products is the profitable bit of the business.

Why can’t supermarkets cut the price of essentials and make it back on the sale of alcohol?  By having a floor price on alcohol and ensuring that placing poor standard alcohol at the same price as quality alcohol like craft beers and premium beer products, it actually gives consumers real choice for the first time in ages.

The floor price cannot affect the licensed trade as the floor is still well below what a publican will charge. Where the legislation falls short is on the need to ensure that sponsorship of events by alcohol companies must stop. 

In years to come this will be seen as hugely important if it goes ahead.

  

 

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