Memorandum by the Campaign for Real Ale
(AL 64)
MINIMUM ALCOHOL PRICING
CAMRA would like to see the introduction of
a mandatory minimum retail price per unit of alcohol to prevent
alcohol being sold as a loss leader in the off trade. A minimum
price should be set at a level no higher than is necessary to
prevent the sale of alcohol at a loss. A minimum price of around
40p a unit linked to inflation would achieve this objective.
In the last 20 years off trade beer prices have
increased by only 39% whereas prices in the on trade have increased
by 141%. The growing price differential between pubs and the off
trade has accelerated the shift in consumption away from well
run licensed premises towards consumption at home or on the streets.
Well-run community pubs provide a safe and supervised environment
for people to enjoy a drink and social etiquette encourages people
to drink sensibly. CAMRA polling shows that the majority of adults
support the notion that "Community pubs are the best place
for adults to drink alcohol responsibly". Action is necessary
to close the gap between on and off trade prices in order to reduce
the price incentive for people to consume alcohol in entirely
unsupervised environments.
Loss leader promotions mean that consumers are
now easily able to buy mainstream beer brands in the off trade
for under a fifth of the price charged in most pubs. A minimum
price of 40p a unit of alcohol would increase the cost of mainstream
beer brands in the off trade to a third of the price charged in
most pubs. Such a change would influence consumer behaviour leading
to a greater percentage of alcohol sales being made through well
run licensed premises.
Preventing the sale of alcohol at a loss is
a targeted measure that will have greatest impact on those who
drink excessively putting themselves and wider society at risk.
National Statistics' figures show that men drinking above recommended
weekly limits are more likely to have purchased alcohol from the
off trade than to have visited a pub. Men drinking below recommended
limits are more likely to have purchased alcohol from a pub than
from the off trade.[69]
Consumer benefit from supermarket loss leaders
is illusory as they are funded by higher prices on other products.
The fact that excess alcohol consumption can lead to poor health,
crime and disorder means alcohol needs to be treated differently
from cans of baked beans or packets of washing powder. It is irresponsible
for supermarkets to aggressively promote alcohol on the basis
of price.
Supermarket representatives have repeatedly
contended that Competition Law prevents them from acting collectively
to stamp out the use of alcohol as a loss leader. It therefore
appears that legislative action is necessary and a statutory minimum
retail price per unit of alcohol would seem to be the most enforceable
method of preventing alcohol being sold at a loss.
11 May 2009
69 Of men drinking between 11-21 units a week
54% report having visited a pub in the previous week compared
to only 47% who brought alcohol from the off trade. Of men drinking
22 units a week or more 51% report having visited a pub but
72% report having brought alcohol from the off trade. Eileen Goddard-Drinking:
Adults behaviour and knowledge-omnibus survey report (National
Statistics, 2008) Back
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