Whisky shops in England braced for Scottish booze cruisers as minimum alcohol pricing hits

 

The price of whisky could go up by as much as £4 per bottle on some brands

 

Source: https://www.telegraph.co.uk/

Helena Horton  Simon Johnson

30 APRIL 2018

 

Whisky shops in Berwick and Carlisle are preparing for Scottish drinkers on booze cruises after the introduction of minimum pricing.

 

Industry experts have warned the new rules will mean drinkers may cross the border in search of cheaper alcohol.

 

At midnight tonight, new pricing rules to discourage problem drinking will increase the prices of alcohol in Scotland.

 

Shops in England are already preparing for the surge in Scottish customers by increasing stock of whisky, other spirits and beer.

 

The law will affect lower-end whisky, as it is the less expensive brands which will be hit by the minimum alcohol pricing, with price per unit set at 50p.

 

This means that 70cl bottle of whisky (28 units of alcohol) could not be sold for less than £14.

 

The House of Malt in Carlisle is hoping to cash in on the minimum alcohol pricing ruling. The shop specialises in high-end whiskys but is expanding its lower-end range for Scots hoping to buy cheap booze.

 

Store manager Mike Little told The Telegraph they have bought in more for their blended range, and are putting on deals for those hopping across the border from tomorrow.

 

He said he hopes the minimum pricing rule will boost his business, explaining: “I hope so – a lot of the products we have are top end so the alcohol minimum prices won’t affect those.

 

“However, we are heavily expanding our lower-end line, and hoping that those who live in the borders will come and buy from us, and we are running promotions for those who live in Scotland and are coming to visit our store.”

 

The Wine and Spirit Trade Association (WSTA) said the price increases will cause consumers to hop across the border.

 

Mike Beale, Chief Executive of the WSTA, told The Telegraph: “The Scottish Government’s policy will increase the price of around half of the alcohol on supermarket shelves and will impact most drinkers, particularly those on lowest incomes.

 

“The WSTA’s long held view is that MUP is likely to be ineffective in changing the behavior of problem drinkers. There are also serious questions about the potential impact on cross border trade and illicit alcohol.

 

“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.”

 

Christopher Snowdon, the director of lifestyle economics at the Institute of Economic Affairs, told The Telegraph: “I would say that Scots will be hopping across the border to buy alcohol that is, in some cases, less than half price.

 

“As with booze cruises to France, some will be doing it legally for their own consumption and others will be doing it to sell illegally in Scotland.

 

“A large and legal online business is likely to emerge to satisfy demand and there is nothing the SNP can do about it.

 

“This is their folly and they will have to live with the consequences. For those who live a long way from the English border, we may see a growth in home brewing and home distilling. A rise in drug use is also on the cards as people use substances such as Spice as a substitute for cheap alcohol.”

 

Scottish people determined to get their hands on cheap alcohol can also purchase it online. Businesses with Scottish premises – this includes Amazon – have to enforce minimum pricing, but those without do not.

 

A business impact report commissioned by the Scottish government explains: “Where alcohol is purchased through the internet or mail order and despatched from outside Scotland, these sales are not subject to the 2005 Act and so minimum pricing will not apply.

 

“Like the potential for cross-border shopping, the incentive to buy from outwith Scotland via the internet will be greater the bigger the price differential between the price of alcohol in Scotland and elsewhere, combined with the volume of goods being purchased.”

 

Some retailers, however, have welcomed the new legislation.

 

Norman Loughery, Off-trade Sales Director at C&C, which owns Scottish lager brand Tennent’s, said: “Today is a landmark day for Scotland.

 

“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.

 

“We’ve been brewing in Scotland since 1556 and producing cider in Ireland since 1935, and have always held responsible consumption of alcohol as a key priority of our business.

 

“We strongly believe that the industry must play its part in tackling alcohol abuse and will therefore continue to work with relevant bodies in the territories in which we operate, including Ireland and Northern Ireland, to seek the introduction of MUP legislation.”