The Government has announced that it will be banning the sale of alcohol in England and Wales for less than the tax paid on it from 6 April this year. In practice, this means that a 750ml bottle of vodka cannot be sold for less than £10.16, whilst a 440ml can of 5% beer will cost at least £0.50, and a bottle of 12.5% wine will exceed £2.41.
The Home Office reckons that the ban will help discourage binge drinking and, in particular, the ‘pre-loading’ on cheap alcohol that takes place before people go out later in the evening. ‘Pre-loading’ is only possible because of the excessive discounts offered by some retailers, most notably supermarkets.
However, whilst widely greeted with approval in principle, most observers do not expect it to have much effect. In fact, Eric Appleby of Alcohol Concern is quoted in Marketing Week as stating that it will impact on just 1% of alcohol products sold in shops and supermarkets.
If accurate, this represents no real impact on either retail sales or the young people making the purchases. Certainly, the minimum prices quoted above indicate no real deterrent.
For the hospitality industry, and pubs and bars in particular, the move seems unlikely to have any real significance: they cannot and do not match the prices offered by supermarkets now, nor will they after 6 April. The playing field remains as uneven as ever.