From The Telegraph:
Buckfast sales in Scotland surged 40 per cent after Nicola Sturgeon introduced alcohol minimum pricing, according to an official analysis that prompted more warnings her flagship public health policy had backfired...
The Tories said that minimum unit pricing (Mup) had prompted drinkers to switch from cheap drinks such as cider - the cost of which rose substantially - to stronger beverages like Buckfast. The price of the tonic wine was unaffected by Mup's introduction in May 2018 as it costs around £8 per bottle, more than 50p per unit of alcohol.
One might almost think that producers of the stronger stuff had a hand in this misguided legislation, as it sets a barrier to entry to cheaper competitors...
Tuesday, 15 November 2022
Tee hee
My latest blogpost: Tee heeTweet this! Posted by Mark Wadsworth at 12:49
Labels: Alcohol, Barriers to entry, Scotland, Taxation
Subscribe to:
Post Comments (Atom)
13 comments:
Thy were looking for easier ways to get pissed and take away the pain of that harridan still being in office.
Scotland makes hardly any cider, but it does make a lot of spirits.
I thought Tennants 'Old Headbanger' was the tipple of choice on the streets and in the parks from 9.00am!
Never tried Bucky - what's it like?
On the good side, the minimum price per unit (50p per 100ml of alcohol) gave small producers a chance to compete with high volume producers.
Also it encourages the sale of quality booze. Why pay 16 of your English pounds for a bottle of 3 year old GlenChunder when for a wee bit more you can have some nectar.
It must really twist Wee Nippy's gut that the extra bawbees accruing from her spiteful law goes to the producer and retailer, not her Ferry disaster fund.
But as soon as she gets her Independence you can be sure that the tax on, and therefore the price of, all booze will go up.
Then there will be a tax on sugar, because her beady eye will notice that sugar sales are mysteriously rocketing.
She really is a sour wee spoilsport.
I have a theory that an uncle, or some other close family member, was a Rabbie Burns, a cheerful toper, who scandalized the neighborhood. But was actually well liked.
Unlike her.
DCB... which spurs on Wee Krankie even more.
B, that fits in with my last comment.
Dh, any answer to Scrobs?
Dh, "protecting small producers" sounds lovely and cozy, but that's always the defence of the mercantilists, protectionists and paternalists, who love import duties.
And there's only so far she can push these silly taxes because there is always cross border shopping. Which is why Denmark had to shelve its Fat Tax again, and which maybe helps southern Swedes facing stupid alcohol retail prices.
The cost of adding more alcohol is not a barrier to entry MW. It's cheap - a bit more sugar. Minimum pricing should reduce demand depending on the elasticity. E.g. Minimum wages could reduce demand for employees. What would minimum rents for property do? If there was a minimum price for cars of £50,000, what would happen? It makes a section of the market disappear where there are willing buyers and willing sellers of cars for £25,000.
OTOH, it is not a tax, it is a minimum price per unit of alcohol (I assume minimum retail price).
Average tin of factory 4% lager = 1.8 units = minimum price 90p. So more than English supermarket price of (say) 70p, so should cost more in Scotland.
Average tin of fancy 4% craft ale = 1.8 units = minimum price 90p. Sells in English supermarkets for (say) £1.20 so unaffected.
So maybe it's some bizarre reverse barrier to entry, where factory producers see their competitive price edge eroded and the Wholesome Scottish Domestic Brewers and Distillers face less competition.
Tesco's Clubcard Plus, (10% off two big shops), usually precludes the Scots from getting the discount as it makes their booze to cheap to qualify because of Krankie's 'policy'!
Glad I live in Kent!
Soory, Dooners, I meant to add a huge 'Ha ha ha' re 'Glenchunder'!
Shurely you don't mean Glenfiddich, as it's a fave here because the bottles all fit closer together in the understairs cupboard!
Mark.The law was not intended to help any section of the booze makers.
Poor Wee Nippie could not increase the tax - that is still in Westminster's hands. All she could do was enforce the minimum retail price. How the producer and retailer split the increase is up to them.
The benefit to small producers was an unintended consequence. In Scotland many new gin brands have appeared as well as new small brewers. Even the big brewers are able push what were previously fairly rare brews sold at a premium, but by reducing the sales price to be nearer the Nippie minimum they can sell a lot more. For example I see, and buy more bottles of "original" Guinness which I can drink at room temperature - my choice.
Scrobs. No certainly not Glenfiddich, a good malt. But there used to be blended stuff, given some bogus Heedrum Hodrum name like Strathsawfy or MacSheeblin.
Packing efficiency - there is much good stuff in square section bottles.
And Glen Grant, a good blend, also comes in equilateral triangular shape.
Slainte.
Dh, ta for real life examples. All makes sense.
"But there used to be blended stuff, given some bogus Heedrum Hodrum name like Strathsawfy or MacSheeblin."
Back in the '90s I used to sell something like that, I forget the name, something Scottish-sounding. It cost less than a pound a bottle, in bond.
I bought a small bottle of Buckfast when I visited the Abby. Tastes like cough medicine.
Post a Comment