Can taxation curb binge-drinking?
Nielsen ScanTrack Liquor figures to the end of January this year suggest RTD sales have dropped dramatically by 29 percent since the introduction of the excise hike on 27 April 2008. Between May last year and January this year, the number of RTDs sold dropped by a total of 310 million standard drinks.
The raw figures show sales of RTDs dropped from 25.9 million litres in April last year to 23.8 million litres in January this year.
At the same time, straight spirits sales shot up from 3.3 million litres to 4.7 million litres.
Beer volume increased from 109 million litres to 140 million litres, while wine crept up slightly from 23 million litres to 24 million litres.
Industry sources are clear that seasonal factors are at work, particularly with beer and wine.
But the year-on-year comparisons tell a similar story. RTD consumption dropped from 31.6 million litres in January last year to 23.8 million litres this year.
Standard spirits consumption grew from 4 million litres to 4.7 million litres and beer from 133 million litres to 140 million litres. Wine dropped slightly, from 25 million litres to 24 million litres.
Who needs any more proof that raising taxes on alcohol does not necessarily lead to a drop in alcohol consumption but to a shift to other alcoholic beverages?
It only takes common sense – and Nielsen figures from Australia confirm this – to assume that consumers would start mixing up their own full-strength spirits when the price of RTDs increased.
