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Drinks trade warns crackdown will cost all consumers and cut choice

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Published Date: 19 June 2008
REDUCED choice and higher prices for all buyers would be the result of the Scottish Government's proposed crackdown on cheap alcohol, ministers were warned yesterday.
Kenny MacAskill, the justice secretary, unveiled a raft of proposals earlier this week designed to curb binge drinking, particularly among the young.

Mr MacAskill said he wanted to raise the age limit for buying alcohol in shops from 18 to 21 and
bring in minimum prices for alcohol such as 35p per unit.

The plans came in for intense criticism when they were published, with warnings that the minimum price proposals might be against EU competition laws.

Yesterday, however, it emerged that the minimum pricing plans might cause serious problems for the drinks industry, with the knock-on effect that consumers in Scotland may be faced with a much more restricted choice of drinks than in England.

Jeremy Beadles, of the Wine and Spirit Trade Association, warned that the plans would force major shops and drinks producers to adopt separate distribution and production lines in order to comply with Scottish legislation.

At the moment, most alcohol is packaged and labelled nationally for the big retailers, with each product having the same barcode identifying the product and its price.

If Scotland had a different pricing structure, the bottles for sale in Scotland would need different barcodes and different packaging, Mr Beadles said.

"The barcode automatically brings up the price of the product in the marketplace. The pricing is done centrally and any promotions are done nationally. If you have a different pricing structure in Scotland, you would need different barcodes for products shipped to Scotland.

"It's adding complication and cost into the process," Mr Beadles said.

He added that some retailers might just drop less popular products for Scotland, depriving consumers of choice.


Comments: We are experiencing technical difficulties which mean some visitors to scotsman.com may be unable to post a message on our comment threads. Our digital support team is working to resolve this problem. Apologies for the interruption in service.

If a supermarket chain has 200 different wines on offer at the moment, it might in future keep all these for its English shops but drop 50 or more of the lowest-selling labels in Scotland, because it would not be worthwhile to change the packaging and barcodes.





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  • Last Updated: 19 June 2008 3:26 PM
  • Source: The Scotsman
  • Location: Edinburgh
 
1

subrosa,

19/06/2008 00:52:40
Too much choice as it is anyway. I can spend more time looking for wine that getting the weekly shop. Maybe wine buyers will be more selective in their choices. The good off licences will always have a wide choice because they know their stock.
2

Huntly loon,

Aberdeenshire 19/06/2008 01:15:37
A price maintenance policy will have one effect it will remove the cheap and nasty alcohol from the shelves. What is the purpose of £2.50 bottles of wine and white cider? It is only bought to get drunk on.

If off-licences need to sell that stuff to make a profit they should get out of the trade. As for under 21s not getting alcohol from a supermarket. I'm sure they all know a 21 year old who will do the buying for them. That is not the problem. It is 18 year-olds buying for those under 18. There will be a three year gap now. In any case 18 year-olds will still be able to drink in pubs. And there is nothing to stop any age drinking at home.

It will cut out impulse buying of alcohol by the young. It is worth a try to cut down on feral open air drinking. As for Buckfast it is popular because it is sweet and easy to drink. But it is not cheap and comparable in price with a sherry or port.

For off licences being obliged to sell their product at a higher price is going to boost their profits, although being able to buy a decent wine at discounted promotional price is something which the middle classes are unfortunately going to miss. What it will do is drive the cheap plonk out of the market.

As for the notion that folk are going to motor to England (including under 21s) to get drink is just plain daft.
3

ennerdale27,

sale cheshire 19/06/2008 07:40:43
I am not sure why the products would need to be packages seperately - chanaging the bar codes is not a problem - it happens on a daily basis prices, already vary within localities and within regions let alone within the various bits of the UK.
Far more deadly is both national and European competition law - I am far from sure that any government can fix and/or control prices in this manner.

 

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