Affordability of wine and spirits up by 131% in off-trade

The affordability of wine and spirits in the UK off-trade has more than doubled to 131% since 1987, the Institute of Alcohol Studies (AIS) has said.

Wine and spirits sold across the UK’s off-trade is 131% more affordable than three decades ago

According to the The Rising Affordability of Alcohol report, the affordability of beer sold in supermarkets and off-licences has increased by 188% over the last three decades.

The overall affordability of alcohol has increased by 60% during the same period in both the on- and off-trade, according to NHS Digital figures cited by the IAS.

The IAS report is the first to compare affordability of off-sales in supermarkets and off-licences to sales in the on-trade (pubs, bars, hotels and restaurants).

The report suggests that the fall in alcohol prices has been driven by cheap alcohol in the off-trade, rather than the on-trade.

In the on-trade, affordability has increased more modestly, up 34% for wine and spirits, and up 31% for beer.

According to the AIS, off-trade beer became more affordable following the end of the beer duty escalator in 2012, while wine and spirits affordability did not rise until taxes were cut the following year.

The Scottish government passed legislation to add a minimum unit pricing (MUP) of 50p to alcohol, which will come into effect on 1 May. Citing NHS Health Scotland, AIS said that around half of the alcohol sold in supermarkets would be affected by the regulation.

However, since prices in the on-trade generally exceed the level of a proposed MUP, less than 1% of on-trade sales would be affected.

Off-trade alcohol sales are decelerating due to economic factors and the influence of e-commerce, according to the latest data from Nielsen CGA.