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Labour MP bids to scrap deep discounting of alcohol

Written by Claire Weekes   
Thursday, 02 October 2008
Labour MP Sally Keeble has launched a new private members bill proposing a minimum price on alcohol.

Under the new plans, a Drinks Industry Council (DIC) would be created, comprised of representatives from the industry, producers, police, health care, youth sector and consumers. The DIC would advise Government on a minimum price for a unit of alcohol, promotions and set codes of conduct.

The Alcohol Sales Bill urges the government to set up the minimum price. DIC would then advise it to set different prices depending on product, alcoholic strength, region and the type of establishment selling it. They also recommend the minimum price should be reviewed every year.

The Bill also calls for limits on alcohol advertising by supermarkets and the areas in which alcohol can be displayed and the introduction of a standard warning label for all drinks.

But the Wine and Spirit Trade Association (WSTA) has said it doesn't support the Bill. Gavin Partington, head of communications at the WSTA, said: "We've always said we don't believe in minimum pricing. It's wrong in principal when people are already facing the pressure of a rise in household bills.

"We don't agree with what is being proposed in the Bill, but we believe that the Government is looking into these various issues as part of its consultation process due to complete on October 13. We will be making a full submission on behalf of our members on that consultation."

Only a minority of Private Members' Bills ever become law.

The Alcohol Sales Bill will next be debated in Parliament on October 17.

The government consultation on its national alcohol strategy ends on October 13.

Do you think that a Drinks Industry Council would work? Have your say below or in our forum area.

Comments (1)add comment

Andrew Aylett said:

It's time brands got behind a ban on alcohol price promotions.

The price war that is running rife in the beer aisles is bad for brands, dangerous to vulnerable drinkers and crippling for manufacturers. In fact, the major multiples are the only winners – and then only in the short term. Eventually retailers will hit manufacturer’s rock bottom price and where do they go from there?

More importantly, half price and bogof offers encourage people to drink more beer, despite what the BRC says. A global in-depth research study looking at Shopper Decisions Made in Store (SDMIS), just completed by OgilvyAction, reveals UK beer shoppers are most vulnerable to change, with almost a third of those interviewed switching brands in store, and are heavily swayed by offers.

It’s far-fetched to think shoppers will buy beer on special offer and save it to drink at a later date…beer doesn’t stay in the fridge for long.

And from a marketing point of view cheap beer devalues brands – we have all witnessed how this happens and how slashing the price erodes brand difference, with four or five brands now occupying the same space. Any beer brand aligned to quality, taste or heritage cannot compete on price without impacting on its brand values.
So brands should welcome the ban which will allow them to compete on factors other than price and help them stand up against the major multiples and stand out against other brands.

Andrew Aylett, Planning Director, OgilvyAction

 
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