Tax rise approved

When it comes to alcohol consumption by category, beer is still Australia’s most popular alcoholic beverage with annual consumption of 78.2 litres per capita in 2008. By comparison, the consumption of wine, RTDs and spirits was 17.0 litres, 14.0 litres and 2.1 litres per capita respectively.

Market research by industry analysts Nielsen finds that the higher prices for pre-mixed alcoholic beverages initially made consumers cut their consumption while significantly boosting the sales of spirits and beer.

However, consumers seem to have got used to the higher retail price. Alcopop sales are rebounding.

While the alcopop tax change delivered its objective of reducing RTD consumption, other categories benefited from the change. The result was an overall net decline of just 0.2 percent in alcohol consumption.

The Nielsen analysis concludes that as the RTD category rebuilds, the total alcohol market will grow thanks to the increase in beer and spirits sales since the excise hike.

Has this been intended by Australia’s policy makers?

The beverage industry, aware of the political pitfalls of recent consumption trends, has responded by putting a voluntary warning on alcopop containers. They will carry a new health warning “Is your drinking harming yourself and others?” under the list of ingredients. The voluntary initiative, introduced by manufacturers, aims to make people consider their drinking habits.