SWA ‘regrets’ govt decision to back MUP

The Scotch Whisky Association (SWA) has called a Scottish court’s ruling in favour of minimum unit pricing (MUP) “a restriction on trade” and confirms it will “remain committed” to tackling alcohol misuse.

The SWA has called a Scottish court’s ruling in favour of MUP “a restriction on trade”

A ruling by the Court of Session in Edinburgh has paved the way for the Scottish government to introduce the policy, passed by MSPs in 2012, which will implement a set price of 50p per unit of alcohol.

“We regret the Court of Session’s ruling in favour of the Scottish Government on MUP,” said David Frost, chief executive of the Scotch Whisky Association. “We continue to believe that MUP is a restriction on trade and that there are more effective ways of tackling alcohol misuse.

“However, we of course remain committed to working with all partners to address this problem so that the long-term trend of declining alcohol-related harm in Scotland continues.

“We will study the details of the judgement and consult our members before deciding on next steps, including any possible appeal to the UK Supreme Court.”

According to the ruling, the government says the act would bring “health benefits of one sort or another” to “at least part” of the population.

In its ruling, the Court of Session stated: “The advantage of the proposed minimum pricing system, so far as protecting health and life was concerned, was that it was linked to the strength of the alcohol.

“There was evidence which demonstrated that the alternative of increased tax, with or without a prohibition on below cost sales, would be less effective than minimum pricing.”

Chief executive of the Wine and Spirit Trade Association, Miles Beale, called the decision “disappointing”.

“Research shows that MUP will not stop the small minority of harmful drinkers, but instead tax the majority of consumers who enjoy alcohol as part of a healthy lifestyle,” he said.
Trends in government data show clearly that the UK has been drinking ever more responsibly over the last ten years – with consumption dropping by a fifth. This has been in large part achieved by partnership working between industry and government in a targeted manner.”

The SWA has long argued that implementing an MUP is illegal when there are “less trade restrictive measures” available, and believes doing so could “severely damage” the Scotch whisky industry’s export markets, as well as the Scottish economy.

This view was backed by the European Court of Justice last year, which ruled that it would be up to national courts to make the decision about whether to implement it.

The introduction of minimum unit pricing in Scotland has industry-wide implications. A spokesperson from Diageo, owner of Scotch whisky brand Johnnie Walker, told The Spirits Business the group is giving “careful consideration” to the court’s judgement.

“We are committed to tackling harmful drinking and to ensuring the decline of alcohol-related harm in Scotland continues,” they said.

“We believe the best approach, working with Government, NGOs and industry, is to focus on the minority of irresponsible drinkers with targeted initiatives, enforcement and education. We will continue to invest resources and effort into initiatives which work towards that goal.”

This piece will be updated with further comment in due course.