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Slideshow
This is what the drinks industry is saying about Scotland’s minimum unit pricing
This week, Scotland became the first country in history to use minimum unit pricing to tackle binge drinking and alcohol addiction.
The minimum unit price (MUP) – which means that a bottle of wine cannot be sold for under £4.69, a four-pack of 500ml beer cans for under £4 and a bottle of whisky for less than £14 – came into effect on Tuesday after a six-year battle with alcohol industry bodies.
Scottish ministers have said that a minimum price would help tackle Scotland’s “unhealthy relationship with drink” by raising the price of cheap, high-strength alcohol.
Although the law was first passed by MSPs back in 2012, it has been routinely challenged in court by the Scotch Whisky Association (SWA), which lost its final appeal in the Supreme Court in November 2017.
It had previously argued that MUP was illegal under EU law and that it amounted to a “trade barrier” which “is a real concern for our industry”.
The law will hit alcoholic beverages such as white cider particularly hard. While in the past it was possible to purchase a two-litre bottle of strong (7.5% ABV) cider for £2.52, after today’s law change, the same bottle will cost at least £7.50.
Cautious that we’re unable to accurately predict the consequences of enforcing MUP, Scottish ministers have included a ‘sunset clause’ in the law, which means the pricing regulations will automatically end in six years if the government decides the policy isn’t working.
Reactions from the drinks industry have been very mixed. While regulatory bodies such as CAMRA are cautiously looking towards the six-month mark, some drinks firms, such as the producer of Tennent’s Lager, are in full support.
We’re rounding up the industry’s reactions to MUP, from brewers to wine experts.
Keep scrolling to see what the trade is saying about MUP.
We will be adding to this story as more comments come in. Do you have an opinion you want to share about MUP? Email edith@thedrinksbusiness.com and let us know.
The Scotch Whisky Association
SWA chief executive Karen Betts.
The SWA told the drinks business that, after “working cooperatively” with the Scottish government on MUP for the best half of the last decade, it hopes the law’s enforcement : “will be smooth.”
“In parallel, we continue to work in partnership with a range of stakeholders to promote responsible drinking and to tackle alcohol-related harm.
While the SWA said it does “agree with the Scottish government that there needs to be an objective, independent and robust assessment of the impact of minimum unit pricing”, the industry body added that “impact on the trade” was equally as important in measuring the success of MUP.
The Wine and Spirits Trade Association
WSTA chief executive Miles Beale.
Miles Beale, chief executive at the Wine and Spirits Trade Association (WSTA), said that MUP will be “ineffective in changing the behaviour of problem drinkers.”
Beale was similarly skeptical over the new law’s efficiency, as it has already been “a very complex and costly measure to introduce,” and cited cross-border trading and a new potential for an alcohol black market as issues we could see in the future.
“However, WSTA’s retailer members have invested significant time and resource to ensure they will be fully compliant with the new regulations in time for the deadline.”
“It is vital therefore that the impact of on businesses and on consumers of the MUP experiment in Scotland is rigorously and objectively monitored and evaluated over time.”
Tennent’s
While regulatory bodies like the WSTA and SWA appear to be waiting for MUP to fail, the maker of Tennent’s lager, self-described as “Scotland’s favourite pint,” welcomed the new law as a “landmark day for Scotland.”
Norman Loughery, off-trade sales director at C&C Group, which includes Tennent’s, Pabst blue Ribbon, Caledonia Best, Magners and Bulmers in its portfolio, said that MUP will only “target strong, cheap alcohol, which is linked to harmful drinking.
“We’ve been supporters of Minimum Unit Pricing since it was first proposed in 2011 and have worked closely with the Scottish Government and our customers around its successful implementation”
“Deaths through alcohol misuse in Scotland are 54% higher than England and Wales and six times higher in the country’s most deprived areas. Heavy drinkers in poverty are at the greatest risk from over-consumption and Minimum Unit Pricing aims to tackle this group specifically.
Loughery said that drinks firms “must play its part in tackling alcohol abuse”, adding that C&C will use its brand presence in Ireland and Northern Ireland to “seek the introduction of MUP legislation” in the future.
Adam Lechmere, general manager of the International Wine and Spirit competition (IWSC), welcomed the decision to penalise drinks firms which produce “powerful cheap ciders and other horrible concoctions that are so obviously designed to get you drunk as quickly, cheaply and effectively as possible.”
“With Scots dying from alcohol-related diseases disproportionately to the rest of the UK, anything which addresses the misery that alcohol causes is a good thing . Alcoholic drinks can be life-affirming or life-destroying, and cheap potent booze is almost always the latter.”
Lechmere said that the legislation “is a start”, but also called on ministers to make preventative measures and alcohol education programmes a priority to tackle the “underlying causes of problem drinking.”
“The IWSC welcomes any measure that encourages people to drink better, whether it’s wine, whisky, gin, beer or cider.”
“As long as Scotland stands by its commitment to run preventive and alcohol education programmes alongside the minimum alcohol legislation, then it should be welcomed.
“If the government loses focus and thinks upping the price of strong cider will solve the nation’s alcohol ills, it will be a failure.”
The Campaign for Real Ale (CAMRA)
Tom Stainer, CAMRA’s Head of Communications, agreed with the WSTA and SWA that the new ruling “needs to be closely monitored in order to make sure that moderate drinkers aren’t increasingly penalised.”
Stainer added that MUP shouldn’t increase drinks prices any further than the Consumer Price Index — which measures changes in the price level of market basket of consumer goods and services purchased by households.
If the price of alcohol in supermarkets raised the price of the average shopping bag beyond a family’s budget, Stainer said, MUP “could potentially damage pub goers’ pockets should anti-alcohol campaigners call for a higher unit price.”
Spirits Europe
Spirits Europe — an industry body representing distillers across the European Union — said that the price hike on alcohol is “inconsistent with the Court of Justice’s ruling in this case and its wider jurisprudence.”
Spirits Europe been vocal in its campaign against MUP’s enforcement, campaigning alongside the SWA against the ruling since 2013. A mission statement on its website says that its trial in Scotland will will encourage other countries throughout the continent to adopt similar regulations which could damage the spirits industry.
“Such ‘copycat’ measures would be disastrous for the European drinks industry, the single largest agro-food export of the EU.”
“We are determined to continue the fight against irresponsible drinking which is a blight upon our society and sector. Fortunately, there are signs of improvement not only in Scotland, but also in other EU countries. These positive trends only fuel the commitment of our sector to work at local level with all willing parties to increase awareness of the dangers associated with harmful drinking, and to promote responsible attitudes to drinking, especially among those most at risk.”
The British Beer and Pub Association (BBPA)
Mindful of the domino-effect Scotland’s new policy could have throughout the rest of the UK, Brigid Simmonds, chief executive of the BBPA said that the impact of MUP should be “carefully evaluated before a proposal is considered in England or Wales.”
“The introduction of Minimum Unit Pricing represents a major change to alcohol policy in Scotland.”
The BBPA “strongly supports” any effort to reduce the impact alcohol abuse, and said it viewed MUP as “the best way to reduce alcohol harm.”
“We have been very active in our support of the Responsibility Deal with the removal of 1 billion units of alcohol from the market as well as raising unit awareness and promoting lower strength products.”
Drinkaware
Drinks charity Drinkaware, unsurprisingly, supported the thinking behind introducing MUP. Speaking to the drinks business, a spokesperson referenced a study by The World Health Organisation which suggests that “price, availability and advertising are key drivers of consumption, for alcohol as for most other consumer products.”
But much like the IWSC, the charity argued that MUP doesn’t look at the wider socioeconomic contexts which can lead to alcohol misuse .
“Public understanding of alcohol harm, and the social and cultural contexts of drinking, are also important when it comes to harmful drinking, and are highly relevant when it comes to changing behaviour.”
“Drinkaware will be watching to see what the effects of a minimum price for alcohol in Scotland are and will be continuing its efforts, in Scotland and across the UK, to help people make better choices about drinking, and to provide the public with impartial information and advice about alcohol harm.”