Minimum price for booze introduced: publicans still feel cheated

In some sectors of the UK beverage industry, the government’s announcement of introducing a minimum price for alcohol sales below duty plus VAT was seen as the "least distorting option".

According to the official review published by the Home Office, raising alcohol prices above the minimum price will have a significant impact on alcohol-related harms concerning "crime and disorder, public health and workplace productivity."

Sounds great. But will the new price policy really help prevent irresponsible drinking?

Are the problems caused by alcohol abuse really limited to people who will only buy a beer for GBP 0.38 (EUR 0.45/USD 0.60)? Apparently, that will be the minimum price for a 44 cl can of lager under the new rule.

As Chris Sorek, Head of Drinkaware, a trust organising alcohol-education campaigns, told the BBC, price is not the only factor to consider. It is far more important to work on the attitude towards alcohol.

The biggest criticism of the government’s decision came from the UK’s on-trade representatives who thought the new minimum price still far too low. Their main point is that the minimum price will not stop supermarkets from selling lower-priced alcoholic beverages.

Most publicans would rather have had the cost of alcohol included in the minimum price, thus narrowing the gap between on-trade and off-trade prices.

The average price of a pint of beer in a pub is around GBP 3 (EUR 3.50/USD 4.75) at the moment.

According to The Publican, a trade publication, a minimum price which included production costs would have to be nearly twice as high as the one proposed by the government.

The publicans’ resentment is understandable: with pubs closing down at an alarming rate and supermarkets continuing to undercut the on-trade on price, publicans have no choice but grit their teeth.

The good news is that beer consumption in 2011 is estimated to fall by 1 percent only.