Ireland’s alcohol bill ‘will not reduce harmful drinking’

The proposed measures in Ireland’s alcohol bill would have a “detrimental” economic impact and would not reduce harmful drinking, a report commissioned by the Irish alcohol industry has found.

Ireland’s alcohol bill would have a “detrimental” economic impact, report states

Completed on behalf of the Alcohol Beverage Federation Ireland (ABFI), which represents alcoholic drinks manufacturers and suppliers in Ireland, the report examined proposals such as Minimum Unit Pricing (MUP), which it said would incentivise cross-border shopping.

“Sterling has depreciated by approximately 16% since the Brexit vote last June, and experience confirms that consumers are willing to react in response to differences in cross-border prices,” said report author John Lawlor, of DKM Economic Consultants.

“If MUP is implemented in the Republic but not in the North, then there will be a permanent shift in price levels, which will be to the detriment of the retail trade, consumers, and the Exchequer in the Republic. For example a one litre bottle of spirits at 40% ABV would attract a minimum price of €31.56.”

Evidence that the measures would reduce harmful drinking was “weak”, the report concluded, adding that they would instead “stifle” innovation and product development by “severely” restricting advertising and marketing, and “negatively impact” rural Ireland.

According to the report, the Bill would increase costs on producers – particularly local producers and new entrants to the market – putting their jobs in “jeopardy”, with a lesser impact on established players.

It found that restrictions on marketing and advertising would impact producers’ ability to innovate and launch new products, citing that Ireland is “a popular test market for alcohol products, as a small, English-speaking market with an already highly-developed regulatory structure”.

The report also found that measures contained in the Bill would “unduly impact” rural Ireland, particularly small retailers who may find it costly to adapt their premises to comply with structural separation proposals.

Lawlor concluded: “Given these negative impacts, the lack of evidence of the effectiveness that it would tackle harmful drinking, and given the long term downward trend in alcohol consumption and youth drinking in Ireland, the measures proposed in the PHAB in question are not justified.”