Molson Coors: Diageo plans undermine responsible drinking

The furore over Diageo's controversial plea for the duty escalator to remain in place for all products except spirits continues apace.

This time it is global brewer Molson Coors taking a pop at the drinks giant, hot on the heels of Wetherspoon chief Tim Martin calling Diageo a "bunch of morons" and threatening to boycott the supplier.

Diageo, owner of eight of the world's top 20 premium spirit brands, as well as the iconic stout Guinness and Blossom Hill wine, called for a unit of alcohol to be taxed at the same rate for all products. This argument is known as "equivalence".

"The reality is that excessive drinking is not a simple issue and the implementation of such a proposal would completely undermine the efforts of government, health communities and the drinks industry at large to tackle this in the UK," said Molson Coors chief executive Mark Hunter. 

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

"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.

"Molson Coors has been vociferous on the need to build a culture of respect for alcohol as an important way to reduce harm.

"Clearly all alcohol has inherent risks and benefits, but it is widely recognised that the risks are greater for higher concentrated products.

He added: "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. 

"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.

"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."