Friday 23 March 2012

What will alcohol now cost you?


Will new alcohol prices affect your favourite tipple? (Image © PA)

British summer time begins this weekend, but if you were planning to celebrate with a cold gin and tonic in the garden then this might send a shiver down your back. The Government has unveiled plans to set a minimum price for alcohol – probably of 40p a unit.

He’s been threatening it for a while and Prime Minister David Cameron has now confirmed he is planning to introduce the step as part of a wider crackdown on alcohol abuse.

It’s a step that the Government believes could result in 50,000 fewer crimes and 9,000 fewer alcohol-related deaths every single year. But what will it cost you? 



Hurting sensible drinkers?

No one wants to see cheap prices helping vulnerable people develop alcohol problems. A change in the law will mostly drive up the price of budget booze, like two litre bottles of cheap cider or fortified wine.

So, where a two-litre bottle of cheap cider might cost £3 now, drinkers would have to pay a minimum of £6 once the changes come in.

But for people who typically buy mid-range and above alcoholic drinks, there’s unlikely to be much change. Most bottles of wine, for example, already sell at more than the minimum.

However, critics of the plans say that it will target sensible drinkers who don’t binge drink but do buy in bulk, for example, people who belong to wine clubs and buy bottles by the case for a lower price.

The Government says that the change will cost the average drinker up to £23 extra a year, while heavy drinkers will pay around £135 a year extra if they don’t change their habits.

Inevitably, however, there will be some perfectly sensible drinkers on very low incomes who could end up unable to afford a social drink.

Here’s a look at some of the potential price changes if the 40p minimum was brought in:
DrinkDealApprox units*Current priceMinimum price at
40p/unit
Any change?
Case of wineTesco: ½ price mixed
case (12 bottles)
120£30£48+£18
Bottle of wineASDA Australian
Chardonnay
10£4.38£4No change
VodkaALDI Tamova Vodka
(70cl)
28£8.72£11.20+£2.48
AlcopopsMorrison’s 12 X
Smirnoff Ice
18£10.99£7.20No change
BeerSainsbury’s 30
bottles Budweiser
45£19£18No change

*Based on Change 4 Life unit analysis 

With a minimum price of £4 a bottle, depending on strength, it looks like wine drinkers won’t be affected if they buy a bottle at a time. 

But clearly wine club members and those buying wine by the case load in order to keep the price down could be hit with considerably higher prices.

The prices of cheaper brands of vodka and other spirits will also be pushed up. However, that’s clearly what the Government intends as it tries to cut down on people ‘preloading’ before going clubbing – ie getting hammered at home first.

Get a round in now…

It looks as though the new strategy will have a small affect on moderate drinkers, although in tough times like these the plans might cause some people to cut back. However, the plans could be even more stringent after the consultation this summer.

When challenged by the BBC, the Home Secretary Theresa May refused to be drawn on whether or not the minimum price could be set even higher than 40p a unit. 

So perhaps consumers should be bracing themselves for worse news to come…

What do you think about the strategy? Will you be affected? Is it the right way to tackle binge drinkers or is the government approach too broad? Have your say in the comments below. 

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