The impact of the minimum price per unit of alcohol on the on and off trade.

The Scottish Government has suggested introducing a minimum price per unit of alcohol to reduce binge drinking. The impact of this on the on and off trade will be researched. The Scottish government has introduced a minimum price per unit of alcohol of ? 0. 45. www.

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bbc. co. uk [online] The proposal is to put the price up for really cheap alcohol, with that, less people would have access to that, for example a two litre-bottle of Tesco cider would increase from ?1. 32 to ?3. 80, while Asda whisky would rise from ?9.

20 to ?12. 60.Would be no change for well know brands, like Johnnie Walker or Bell’s, which all currently retail are above ?14. 00.

www. bbc. co. uk [online] With that, the Government says, the minimum price would have significant health and social benefits including, only in the first year: 50 fewer deaths from alcohol-related harm; 1. 200 fewer hospital admissions; a ?5. 5 million reduction in health care costs 22,900 fewer days absence from work. After 10 years, benefits would increase to: 225 fewer deaths from alcohol-related harm; 4,200 fewer hospital admissions annually; an ?83 million reduction in health care.

ww. scotland. gov.

uk [online] What is an alcohol unit? One alcohol unit is measured as 10 ml or 8g of pure alcohol. This equals one 25ml single measure of whisky (ABV 40%), or a third of a pint of beer (ABV 5-6%) or half a standard (175ml) glass of red wine (ABV 12%). How many units are in a drink can be calculated by: strength (ABV) x volume (ml) ? 1000 = No of units. For example a pint of Stella – 5. 2 x 568 ? 1000 = 2. 95 www. drinkaware. co.

uk [online] Health secretary Nicola Sturgeon said that it is saving lives, saving money and also saving future generations.She also said: “Getting the price right is vital for minimum pricing to work – too low and it simply be ineffective. After careful consideration, we believe that 45p is the right price.

” Dr Harry Burns, Scotland’s chief medical officer, said: “Scotland has an unenviable reputation when it comes to alcohol. We are, sadly, world-class when it comes to damaging our health through heavy drinking. Minimum pricing, as part of a package of wider measures, can help us to redness the balance when it comes to our unhealthy relationship with alcohol. ” www. scotland. ov. uk [online] What is the actual impact that will have on markets, pubs and off licence? Is it not certain yet what will be the effect on the on and off trade, as pubs and restaurants currently does sell alcohol above the minimum price anyways, as for the other side, off licences and big markets will have to adjust their prices.

As has been researched, the on trade market is really happy with this, because that will make the costumer goes out for drinks, instead then buying on markets and off licences. As Mr Nathan, assistant manager, from Yate’s said: Overall I believe this will be of great benefit to the pub/club industry as large supermarket’s such as Asda and Tesco will no longer be able to produce such low priced offers on drink and in turn the consumer will venture out to the bars where the price of alcohol will be the same yet the atmosphere and social element will be far greater than a night in at home”. (See appendices-personal research) On the other side, a research by ASDA shows that almost 60% is against the minimum price, while only 39% is ok with that, on this survey was heard 10. 000 people.Paul Kelly, corporate affairs director for ASDA, said: “Two thirds of customers in Scotland told us they do not support the Government’s proposals for a ban on promotions while 61per cent do not support minimum pricing levels. Customers do not believe the measures will achieve the outcome Government wants. ” www. asda.

co. uk (on line) A recently research shows also, the minimum price would benefit big markets like Tesco, Asda and Lidl. Because all the money from the sales, an estimate 700 millions would go straight to there pockets, instead then to the Government.Andrew Leicester, co-author of the research, said: “The Government should seek to change European regulations on how alcohol taxes can be structured, so that taxes can mimic the impact of minimum prices whilst ensuring the resulting revenues go to the Government and not firms. ” www. telegraph.

co. uk (online) The Scottish Government is having heavy opposition from the British Government, the British government says this 45p wouldn’t help at all reduce the crime, and hospital admissions, instead, would only harm the regular drinks and benefit the big markets.But Tory health spokeswoman Mary Scanlon said: “There is simply no political support for the SNP’s blanket minimum pricing. These plans would penalise responsible drinkers, harm the Scotch whisky industry, cost jobs and is probably illegal. ” www.

bbc. co. uk (online) The biggest supermarket chain in the UK, Tesco does support the minimum price per unit of alcohol, saying that this would not only benefit the markets as well the people of UK.The retailer’s chief executive Sir Terry Leahy has also said: “We welcome the new Government’s commitment to act on below-cost selling of alcohol and today I pledge that we will support Government-led action to make this happen across the UK.

We will also support any future discussions on a minimum price for alcohol. Putting simple information on the front of the pack about salt and fat content has led to a big increase in the sale of healthier alternatives he said. So we will now do the same for alcohol on all our own-label products, bringing the information on units of alcohol from the back label to the front. ” www. supermarket. o. uk (online) The fourth biggest supermarket in the UK, Morrison, also has written to the Government to declare they support with the minimum price.

The director of corporate affairs at Morrison’s, Mr Richard Taylor said: “Having considered the arguments thoroughly, Morrison’s believes that the best way for the government to intervene is to introduce a compulsory ban on off-licence sales of alcoholic beverages below the rate of duty and VAT.Morrison’s does not sell alcohol below duty + VAT. We believe that this mechanism, if enshrined in law, would provide an immediate and fair approach to stem the misuse of alcohol. www.

supermarket. co. uk (on line) The second biggest supermarket chain in the UK, ASDA have an in store policy, which means, they cannot sell any alcohol below the cost of duty plus VAT. Asda’s decision come about 2 months after Tesco introduce that to the government. Home Secretary Theresa May, Asda Chief Executive Andy Clarke said: “It will be Asda’s policy in all our stores not to sell alcohol to the public below the cost of duty plus VAT.

I see this as a small but important first step in the process towards creating a new way of selling alcohol in the UK. “,BIBLIOGRAPHYBBC News ScotlandAvailable from: Accessed 2nd September 2010Herald ScotlandAvailable from: Accessed 03rd October 2010The Scottish GovernmentAvailable from: Accessed 03rd October 2010TelegraphAvailable from: Accessed 03rd October 2010, 14th October 2010GuardianAvailable from: Accessed 03rd October from: Accessed 03rd October 2010The TimesAvailable from: Accessed 03rd October 2010Asda SupermarketAvailable from: Accessed 14th October Accessed 14th October 2010