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Calculator to work out minimum RRP for drinks

The Wilson Drinks Report (WDR) has launched a new online calculator that works out the minimum retail price – consisting of duty plus VAT – for almost any size and type of alcoholic drink.

The calculator has been launched in response to the government’s introduction of a ban on selling alcohol below cost.

Using the latest duty rates announced by chancellor George Osborne in last month’s Budget, the WDR calculator enables you to pick any combination of bottle or can size, packs and abv strength.
The calculator will advise what the lowest permissible retail price will be once the ban is implemented, as well as highlighting both the split of duty and VAT and also the number of units in the selected combination.  

The example below is for a case of 12 x 284ml bottles of 5% abv lager.

Tim Wilson, managing director of the WDR, said: "The ban on selling alcohol below cost has been much trumpeted by the new government. Our new calculator lets you work out exactly what the lowest permissible retail price will be for your favourite drink.

“The reality is that very few retail prices will go up once the ban comes into force as duty plus VAT is much lower than almost every selling price right now, even those items on promotion.

“However, our new online tool will quickly highlight the differences between current pricing and the lowest permissible retail price.

“This new ban will still permit retailers, if they so wish, to sell a case of 5% Stella Artois at £3.80 or a can of 3.6% Greene King IPA for 35 pence.

“Of course we hope that all retailers in the UK will continue to price alcohol responsibly, and that they focus more on value, choice and margin than on volume."

Alan Lodge, 06.04.2011

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