Coors' chief attacks Diageo's duty plea

Molson Coors boss Mark Hunter has branded Diageo's call for alcohol duty to be equalised as "very disappointing", claiming it is an "apparently self-serving approach".

Hunter, chief executive of the brewer, whose brands include Carling and Grolsch, has mounted a fierce attack on Diageo's proposal which would effectively mean a tax rise on beer.

"We agree that there should be equalisation of tax for equivalent products, such as beer and cider, but the blunt instrument suggested by Diageo will not achieve the objective of finding ways of tackling drink related social problems," he said.

"We believe it is no small coincidence that the proposal put forward by the world's biggest spirits manufacturer is predicated on a freeze on duty for spirits."

Diageo's suggestion to the Treasury, which is currently reviewing the alcohol duty system, has also attracted criticism from CAMRA and the British Beer & Pub Association.

CAMRA claims equalizing duty would add 17p of duty to every pint of beer produced and lead to huge increases in the price of a pint.

Hunter added the problem of "excessive" drinking is not simple and the Diageo plan would "completely undermine the efforts of government, health communities and the drinks industry at large to tackle this in the UK."

"Diageo argue that "alcohol is alcohol" but in terms of the social and health consequences, clearly not all drinks are equal," Hunter said.

"The human body simply cannot cope with the amount of beer liquid that would equate in unit terms to the volume of alcohol in a bottle of whisky or vodka."

He added: "In the context of a consultation to find ways of tackling drink related social problems, to which the drinks industry has largely responded in a constructive and responsible manner, it is very disappointing to see this apparently self serving approach from a major player in the industry.

"We remain concerned that excessively cheap prices and problem drinks are a slur on our industry that must be urgently addressed.

"We also believe passionately that the simple, affordable pleasure of sharing a beer with friends should be preserved.

"Sadly, it feels as though Diageo would seek to compromise efforts on both counts."

Both Molson Coors and Diageo are members of the British Beer & Pub Association.