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03-12-2018, 14:38
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Minimum alcohol pricing has now been in effect in Scotland for six months. I wrote about this at the time (https://pubcurmudgeon.blogspot.com/2018/05/minimum-madness.html). Given that nothing of this kind has ever been tried before, obviously it was hard to predict the results, but it was a reasonable assumption that overall off-trade alcohol sales would show a small decline, but the value of those sales increase.
However, it hasn’t turned out quite that way. According to a study commissioned by cider maker Aston Manor (https://www.thescottishsun.co.uk/news/3475439/buckfast-scotland-minimum-pricing-sales-soar/), the total volume of alcohol sales has actually increased by 4%, while the value has gone up by no less than 11%. That certainly isn’t what was meant to happen.
Obviously it’s early days yet, and this is only a survey, not a detailed analysis of actual sales. It follows a general pattern, with sales south of the border in fact rising by 7%, encouraged by the long hot summer and England’s good run in the World Cup. We will have to wait and see what the official figures show, and how cross-border sales are affecting alcohol consumption in Scotland, but it does call into question how effective a policy this is likely to be.
Not surprisingly, sales of the notorious Buckfast tonic wine have shown a marked increase. Contrary to widespread belief, this has never been particularly cheap in terms of price per alcohol unit, and its appeal is down to its high caffeine content. It no longer commands such a price premium over other drinks. In contrast, sales of white ciders have plummeted, as they had little to recommend them apart from the high “bangs-per-buck” ratio. Frankly, it’s surprising anyone is continuing to buy them when they can get far more palatable drinks at the same price.
Convenience stores have gained market share over supermarkets, as the big stores no longer enjoy the price advantage they once did. In fact, the whole thing can be regarded as a price-fixing sceheme in favour of retailers. It’s rather ironic that the useful idiots of the Scottish Licensed Trade Association (https://pubcurmudgeon.blogspot.com/2018/03/och-aye-what-nice-crocodile.html) were so keen to support it, when it has given such a shot in the arm to the financial health of the off-trade. Given that household incomes haven’t increased by 11% or anything like it, some other area of expenditure must have suffered, and it could well be that pubs are included within that.
What seems to be happening is that, given that all categories of drink at the lower end of market now have a level playing field in terms of price, consumers are being more discerning over their preferred method of getting their desired alcohol kick. It’s the most enjoyable way, not simply the cheapest. This helps explain the rise in sales of fortified wines. There’s no longer any place in the market for the £3.49 bottle of gutrot wine or the £9.99 bottle of paintstripper vodka.
It will take a lot longer before we really have a full picture of the impact, especially in terms of the effect it has on “problem drinkers”, who are supposedly the group being targeted. But it doesn’t take a great deal of insight to realise that, if it isn’t felt to be “working”, however that is defined, the inevitable reaction will be to increase the dose and jack up the minimum price yet further.

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