The Scottish government confirmed plans to increase the MUP from 50p to 65p, resulting in retailers seeing higher margins and prices. Higher-volume, lower-cost lines across beers, wines and spirits will be most affected.
Analysis by Better Retailing shows that 70cl own-label vodka lines would increase from a minimum of £13.13 to £17.06, adding an extra £2.07 per bottle sold based on a current recommended price of £14.99.
The move has been made to reduce alcohol harm in Scotland, but the Federation of Independent Retailers (Fed) has warned the MUP rise will could put retailers at further risk from retail crime.
Fed vice-president Mo Razzaq said: “It is not going to tackle the issue of alcohol consumption. Anyone with alcohol abuse issues will steal the product if they cannot afford it, as it is an addiction.
“The government is not spending enough to get people addicted to alcohol with the help they need. There also needs to be highly effective campaigning to help change Scotland’s attitude towards drink. As usual, it is passing the buck to businesses.”
Scottish district president Hussan Lal expressed relief that the minimum price was not higher than 65p, but agreed rising alcohol prices were contributing to thefts in his store.
Trade reactions
Meanwhile, trade body Scottish Grocers’ Federation (SGF) has said “restrictions and higher prices inevitably come at a greater cost to doing business”.
SGF chief executive Pete Cheema OBE said: “Many convenience retailers are working flat-out just to keep the lights on, and doors open. Continuing to provide a ‘full basket’ for customers means that if one product category has limited value, then income needs to come from other items. Restrictions and higher prices inevitably come at a greater cost to doing business, putting more pressure on budgets and struggling household incomes.
“Ministers didn’t listen to us on DRS, they didn’t listen to us on NDR, and now they are not listening to us on MUP.”
Meanwhile, the SLTA (Scottish Licensed Trade Association) welcomed the announcement, and applauded tackling “the problem of cheap booze” and “irresponsible promotions” in Scotland.
Colin Wilkinson, SLTA managing director, said: “Scotland has long had a challenging relationship with alcohol and the link between low prices and increased consumption is clear. The sale of cheap alcohol has been a major factor in many people developing alcohol-related problems so a proportionate increase in MUP make absolute sense.
“Pubs and bars provide a controlled and safe environment for people drinking alcohol whereas people drinking at home are not necessarily aware of how much they are drinking. The retention of and the proposed increase in the level of MUP will help avoid a return to the days of deep discounting and irresponsible promotions which were particularly seen in supermarkets where alcohol, on some occasions, was being sold cheaper than bottled water and below cost as a loss-leader.
“The 50p level was approved in the Scottish Parliament nearly 12 years ago so we believe that with rises in inflation since then, it was time to increase MUP from 30 September.”
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