Drinks industry bears the brunt as minimum alcohol price looms





Still licking their wounds from the Chancellor’s recent Budget and more pertinently from the continuation of the alcohol tax escalator which equates to a 5% increase in excise duty, the drinks industry have been dealt another blow following reports the government will shortly announce new legislation setting a minimum alcohol price of 40p a unit in England.
 
Prime Minister David Cameron, in what is thought to be the biggest public intervention since the Labour government’s smoking ban, also plans to ban the sale of multi-buy discount deals in supermarkets which isn’t necessarily bad news for the CellarVie Wines team!
 
The coalition plans to introduce the new restrictions in autumn after a summer consultation, in the hope the minimum price comes into force in 2014. 
 
The thinking behind the ban on discount deals is to curtail the increasingly common deals promoted by major supermarkets, many of whom sell alcoholic beverages at a loss. 
 
The government believe the 40p a unit minimum price will result in 50,000 fewer crimes a year, in addition to 9,000 fewer alcohol related deaths in the next decade, as Cameron wages war on the country’s perceived binge drinking culture. 
 
According to The Guardian, the Prime Minister will say: "This isn't about stopping responsible drinking, adding burdens on business or some new stealth tax – it's about fast immediate action where universal change is needed.
 
"Of course, I know this won't be universally popular. But the responsibility of being in government isn't always about doing the popular thing. It's about doing the right thing."
 
The aforementioned source intimates the drinks industry, like the tobacco industry before it, is certain to challenge Cameroon’s intentions at the European court of justice under EU competition laws.
 
CellarVie Wines says: It does indeed feel as if the drinks industry is somewhat under the cosh at the minute. While it’s difficult to oppose the increases in tax given the current uncertain financial climate, the industry appears to be being singled out, while the consumer inadvertently punished for enjoying a glass of wine. Having said that, the minimum alcohol price of 40p a unit in England will with any luck lead to supermarkets taking a more responsible approach to the way they market and sell alcohol.
 
Anything that promotes responsible drinking is important but equally the recent developments in the drinks industry courtesy of the powers that be have inevitably placed greater pressures on independent retailers and wholesalers to somehow absorb these increases. 
 
While the price hike and the level of it has increased dramatically it is all relevant and the rise will of course not be as keenly felt on a premium bottle of wine. If that’s the case then hopefully consumers and wine drinkers in general will be encouraged to drink better quality of wine. 
 
To read more about the budget and CellarVie Wines' reaction to it click here.  
 
[Picture courtesy of DJ Spiess www.fermentarium.com]  

16.09.15

BBQ Spatchcock Piri-Piri Chicken


Summer has come to a close and autumn is well and truly on its way. Blustering winds, cooler temperatures and swiftly shortening days mean it will soon be time to wrap up warm and to make the most of the wonderful autumn produce on offer. Time to say goodbye to those fresh, summer whites and replace them with the warmer, more robust reds frequently associated with colder temperatures.
26.08.15

What to drink with Fish Pie?


Fish Pie is a quintessentially British recipe. Easy to make and absolutely delicious, it is also a great dinner party dish - with a limited amount of last minute preparations needed it’s a winner in my book! However, where do you start when matching a fish pie with wine?
24.07.15

Five Ways to Open a Bottle of Wine Without a Corkscrew


For that moment when you find yourself without a corkscrew and unable to open that bottle of wine; here are five ways to open a bottle of wine without a corkscrew. Obviously, if you do have a corkscrew to hand, it is a lot easier to go down the more traditional route…



20.03.13

WSTA lambast inflation busting tax hikes on wines and spirits

The Wine and Spirit Trade Association (WSTA) has condemned the Chancellor for pushing ahead with inflation busting alcohol tax rises on wines and spirits for the fifth year in a row, through the widely derided Alcohol Duty Escalator. read more


30.08.12

What’s Hot in the World of Wine: Terroir, Pinot Noir & Sauvignon Blanc locums

Once a fortnight, CellarVie Wines dives knee deep into the weekend’s newspapers in an effort to determine what’s hot in the world of wine. In this instalment, The Sunday Times explains the nuances of Terroir and winemaking in Mexico, The ... read more


18.07.12

'For relaxing times' get your "Rocks Off" on Suntory's Rolling Stones Whiskey

As part of the well-documented 50th anniversary celebrations of the Rolling Stones’ first gig at London's Marquee Club on July 12th, 1962, Japanese distillery Suntory will release a limited edition blended whiskey to commemorate the ... read more


17.07.12

French bite back over Foie Gras ban as MP calls for Californian wine boycott

A French MP has urged restaurants in France to boycott the selling of Californian wines after the US state banned the sale of foie gras on 1 July.  read more


11.07.12

Organic, biodynamic & sustainable winemaking: Does the UK consumer care?

During the London International Wine Fair, CellarVie Wines spoke exclusively to some of the industry’s key players to discuss the relevance of organic, biodynamic and sustainable winemaking in order to determine whether or not people ... read more


28.06.12

Wine drinkers will pay more for fancy names on a bottle

A marketing study by a wine researcher in Canada suggests the name on the label of a wine bottle can have a substantial impact on how much the drinker enjoys the taste, and more pertinently, how much the consumer is willing to pay.   read more


23.03.12

The Budget, the alcohol tax escalator & a hangover for the drinks industry

In his infinite wisdom the much maligned Chancellor, one George Osborne, announced in Wednesday’s Budget the continuation of the alcohol tax escalator which equates to a 5% increase in excise duty.  read more



Post a comment...