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ROI hit by ‘staggering’ cross border booze sales
An increase in cross border alcohol shopping could have “huge repercussions” for businesses across Ireland, the Drinks Industry Group of Ireland (DIGI) has warned.
Cross border alcohol shopping in Ireland could have “huge repercussions” for businesses across the country
The group says tax differences and decline in the value of sterling is driving consumers across the border to buy alcohol at “hugely discounted rates”, which in turn is having a “detrimental impact” on jobs, businesses and exchequer returns.
On average, a bottle of whiskey €4.01 more expensive in the Republic of Ireland.
DIGI has calculated that the “average” Christmas alcohol spend – comprising a bottle of vodka, a bottle of whiskey, 18 bottles of lager, 6 bottles of sparkling wine and a case of sauvignon blanc – would be €53.17 cheaper in northern Ireland, based on Revenue Commissioners Price Survey and exchange rates on 7 November.
Donall O’Keefe, secretary of the Drinks Industry Group of Ireland and CEO of the Licensed Vintners Association, called for the government to “fast-track competitiveness-boosting measures”.
“We pay the highest prices for alcohol in Europe driven by our very high taxes and the fall in the value of sterling is making it an economic reality for shoppers to cross the border this Christmas,” she said.
“This will have huge repercussions for jobs and businesses across Ireland and could decimate local economies in the border counties.
“A recent poll by Red C for the Sunday Business Post found that 56% of those living in border counties intended to shop over the border in the run up to Christmas and with cost savings of this magnitude available, it’s hardly surprising.
“A recent report from analysts Goodbody showed a staggering 29% jump in the number of trips to Northern Ireland between 10am and 11am on Saturday mornings.
“The government needs to fast-track competitiveness-boosting measures and look again at excise duties which are not only driving shoppers over the border but impacting our tourism offering and competitiveness over the medium term.”