Minimum pricing - The debate begins

This week’s worst kept secret is out and the government has finally come clean with its plans for minimum pricing.

The Home Office announced a recommended 45p per unit minimum price and a sweeping ban on multi-buy price promotions, claiming the move would lead to 4,630 fewer alcohol related hospital admissions in the first year of the policy.

Naturally, the move has sparked furious debate in and out of the industry. Here’s what key figures had to say.

Andrew Cowan, country director, Diageo Great Britain:

“This policy does not target problem drinkers - it simply hits everyone, and in particular, the vast majority of whom drink responsibly. Figures show that three quarters of all alcohol will rise in price if a 50p minimum price is implemented. The Adam Smith Institute concluded this week that minimum unit pricing is a flawed policy based on no credible evidence. Good policy should be evidence based, targeted and effective and this policy is none of these.”

Guy Mason, head of corporate affairs, Morrisons:

“We don’t believe there is any practical evidence to show a change in price will effect consumption. Multibuy deals are part of a weekly shop and it’s going to take away that element of choice.”

Rooney Anand, CEO, Greene King:

“We strongly welcome the government’s intention to introduce a minimum unit price for alcohol, which is an important step in helping to address the UK’s long-term problems associated with binge drinking and alcohol-related social disorder. We also welcome the news that a broader consultation on associated measures will commence. We would like to see the outcome of the consultation set a minimum unit price at 50 pence per unit, as it could significantly increase the number of lives saved per year and avoid any issues associated with cross-border shopping between England and Scotland.”

Yasmin Batliwala, chair, Westminster Drug Project:

“Although we welcome the government’s decision to increase the minimum pricing of alcohol, this is only a step in the right direction as there is a great deal of evidence to support the simple economic fact that even higher minimum alcohol pricing would achieve a greater reduction in binge drinking and alcohol-related anti-social behaviour, health issues and crime levels. The Chancellor should therefore balance these social costs against the loss of revenue from falling alcohol sales due to higher pricing.”

Clare Thomas, Head of Food & Drink, Addleshaw Goddard:

“Although the minimum alcohol pricing proposals do not raise competition law concerns, as in Scotland, they may be susceptible to legal challenge. If the changes affect cross-border trade in alcoholic drinks by placing imports at a competitive disadvantage, then they could breach the EU single market legislation.”

David Ware, director of grocery, SymphonyIRI Group:

“Price promotions will be a thing of the past for many. Tomorrow’s strategies will need to focus on other ways to differentiate the brand. Many will look to establish a premium strategy and packaging and branding will be key to their success. We expect to see more innovation and use of cross brand promotions or added value promotions where price is no longer a driver of purchase.”

Andrew Opie, food director, BRC:

“Most major retailers believe minimum pricing and controls on promotions are unfair to most customers. They simply penalise the vast majority, who are perfectly responsible drinkers, while doing nothing to reduce irresponsible drinking.”

James Lowman, CEO, ACS:

“In the past five years, we have seen a reduction in alcohol consumption, increased consumer awareness of the risks associated with alcohol, and new positive partnerships tackling antisocial behaviour and underage drinking. New sweeping changes to licensing rules and alcohol promotions will impose burdens on business and risk undermining the positive work underway. Specifically we urge Ministers not to impose the unnecessary and burdensome ban on multi-buy alcohol promotions in off licences. This measure is complex and will disproportionately harm smaller stores.”

Miles Beale, CEO, WSTA:

“It is hard to understand why the government is pushing ahead with the consultation now, when there is a wall of opposition in Europe, a legal challenge in Scotland, a lack of any real evidence to support minimum unit pricing, opposition from consumers and concerns raised from within Cabinet itself. Minimum unit pricing and the proposed restrictions to promotions are wholly untargeted and will unfairly punish millions of consumers and businesses in the UK, while doing nothing to tackle the root causes of alcohol misuse or associated crime and disorder.”

Andrew Wilson, director of policy, International Chamber of Commerce:

“There is a real risk that the measures will be viewed by some as an effort to freeze out low-cost competition in the drinks market. We’ve already seen equivalent Scottish legislation challenged by other European governments for this very reason”.

Damian Green, policing minister:

“These measures are not about stopping responsible drinking but designed to tackle the minority who cause alcohol-related crime and disorder in our local communities. The evidence is clear - the availability of cheap alcohol contributes to harmful levels of drinking. It can’t be right that it is possible to purchase a can of beer for as little as 20p.