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Drinks industry reacts to alcohol minimum unit price

Drinks industry reacts to alcohol minimum unit price

Food Manufacture

By James Ridler 

November 16, 2017

 

The Scottish drinks industry has warned that this week’s UK Supreme Court ruling in favour of a minimum price for alcohol will hit business and damage exports.

Seven Supreme Court judges ruled that legislation on a minimum unit pricing (MUP) for alcohol did not breach European Law, overturning a challenge by the Scotch Whisky Association (SWA).

The Scotch Whisky Association (SWA) said it accepted the court’s ruling on MUP, but argued that it risked harming exports of whisky.

SWA chief executive Karen Betts said: “We will now look to the Scottish and UK governments to support the industry against the negative effects of trade barriers being raised in overseas markets that discriminate against Scotch whisky as a consequence of minimum pricing, and to argue for fair competition on our behalf.  

“This is vital in order that the jobs and investment the industry provides in Scotland are not damaged. At home, we hope to see an objective assessment of the impact of MUP.”

The SWA said it would continue to work in partnership with the government and the voluntary sector to promote responsible drinking and tackle alcohol-related harm.

Negative effect of minimum pricing

The Wine and Spirits Trade Association (WSTA) echoed the SWA’s fears over the negative effect of minimum pricing on Scottish businesses.

Mile Beale, WSTA chief executive, said: “We look to the Scottish government to provide clarity to businesses on how MUP will be implemented and to give them sufficient time to do so as efficiently as possible.

“Equally, MUP’s impact on businesses and on all consumers must be rigorously and objectively monitored and evaluated over time.”

Beale urged for the government to continue supporting policies that have already proved effective in curbing alcoholism, alongside the new MUP.

Consumer rights group Consumer Choice Centre (CCC) argued the MUP would cause more harm than good.

More harm than good

It claimed that there was no evidence that set minimum prices on alcohol would lead to a reduction in consumption. Instead, it would lead to lower income families spending more of their income on alcohol.

Luca Bertoletti, European affairs manager of the CCC, added: “There’s also an imminent risk that consumers will pivot to lower quality spirits and minimum prices being a stimulus for black markets and moonshined alcohol.

“If the Scottish government wants to really tackle the problem of alcoholism it should work more on the educational programs and allow consumers to make their own choices.”

The Supreme Court ruled that Scotland could set a minimum price for alcohol on Wednesday (November 15), following five years of court challenges.

It would see drinks charged at 50p per unit, in a bid to curb excessive alcohol consumption in the country.

 

 

 

Asia:  Average Korean consumes 9 liters of alcohol a year

The Korea Herald

By Lim Jeong-yeo

November 16, 2017

Koreans of legal age consumed an average 9 liters of pure alcohol per person in 2015.

The figure was confirmed by professors from the Catholic University of Korea Uijeongbu St. Mary’s Hospital and Inje University Graduate School of Public Health, through a study on data, Chosun.com reported Tuesday.

Nine liters of alcohol would be 121 bottles of soju or 366 cans of 500-milliliter beer. Soju typically has 21 percent alcohol by volume while beer is about 5 percent. 

The research team analyzed the alarming figure as stemming from the aggressive marketing by convenience stores and big supermarket chains, the spreading “honsul” and “homesul” cultures and the increase in women drinking. Honsul refers to the act of drinking alone, while homesul refers to drinking at home.

Convenience stores and supermarket chains have been selling four cans of imported beer at a discounted price of 10,000 won ($9).

Sweetened fruit-flavored soju has also lowered the threshold for casual drinkers. Alcohol consumption per person from fruit-flavored soju catapulted from 0.04 liters in 2010 to 0.3 liters in 2015. Alcohol from foreign beer consumption also rose threefold from 0.05 liters in 2010 to 0.15 liter in 2015. Wine consumption similarly climbed per person from 0.07 liter to 0.13 liter over the same period.

Critics say regulations on advertising alcoholic beverages in Korea should be reexamined. Currently, young and popular celebrities are being employed to promote major liquor brands. Lee Hyo-ri, Kim Tae-hee, Shin Min-ah, IU and Suzy have all represented homegrown liquors.