Drinks producers slam minimum price proposals

By Ewan Turney

- Last updated on GMT

Related tags Health select committee Alcoholic beverage Drink Scotch whisky

Minimum price: under fire from producers
Minimum price: under fire from producers
Drinks producers have hit out at the Health Select Committee's proposals to introduce a minimum price per unit on alcohol. The report on alcohol...

Drinks producers have hit out at the Health Select Committee's proposals to introduce a minimum price per unit on alcohol.

The report on alcohol (MPs: it's war on cheap supermarket alcohol​) also called for a higher duty rate on spirits and toughre restrictions on alcohol advertising and marketing.

The Committee rejected the "myth" that minimum pricing would unfairly penalise moderate drinkers — a point flatly rejected by SAB Miller.

"The vast majority of people in Britain drink moderately and within recommended guidelines," a spokesman said.

"Minimum pricing will have an impact on the vast majority of responsible, law abiding people who drink moderately whilst it would be ineffective in addressing the minority of excessive drinkers.

"A more practical solution involves the enforcement of the relevant laws already in place to curb misuse and prevent the sale of alcoholic products to minors, whilst offering education and where necessary treatment for harmful drinkers."

Marketing crackdown

Diageo GB managing director Simon Litherland said the tougher proposals on advertising — increasing restrictions on sponsorship and social networking sites as well as proposing a 9pm watershed for TV ads and making advertisers pay for one public health ad for every five ads they have on TV — effectively amounted to a ban.

"The draconian proposals on alcohol advertising and sponsorship lack a credible evidence base," said Litherland.

"They amount to an effective ban, which would have serious repercussions for the sports concerned, the media and advertising industries."

Duty rises

He also said that the proposals to increase duty on spirits in stages to the same percentage of average earnings as in the 1980s (11%) would double the price of a bottle of Bell's to £23.

The Scotch Whisky Association (SWA) also took issue with the targeting of spirits. "The Committee is unfairly singling out spirit drinks, such as Scotch Whisky," said Campbell Evans of the SWA.

"Spirit drinks represent less than 20% of the UK drinks market and alcohol sold as spirits is already taxed more heavily than other drinks. In calling for minimum pricing, the Committee is seeking to introduce a measure that we believe to be both illegal and ineffective."

Molson Coors UK chief executive Mark Hunter added: "We have worked with the system of minimum pricing in Canada, and are happy to look at whether it would work here.

"However, there is no one quick fix for addressing alcohol harm.

"We need time to review the suggestions of the Health Select Committee in light of our own business and experience.

Related topics Legislation

Property of the week

Follow us

Pub Trade Guides

View more