MUP will hit over half of drinks

MORE than half of off-trade alcohol sold in Scotland is being sold for less than 50p a unit, the figure set for minimum unit pricing in Scotland, according to new research.
screen-shot-2016-11-29-at-12-54-46Analysis from Nielsen shows at least 50% of alcohol sold by Scottish retailers does not meet impending minimum pricing legislation (now being appealed to the Supreme Court).
The company analysed EPOS data from nearly 1,200 Scottish stores, concluding that spirits will be the most affected, as 69% of volume currently sold is below the 50p per unit threshold. Beer is the next most affected (67%) followed by cider (51%), while only 3.4% of wine sales would see an MUP impact.
Looking at the top 50 selling products in each category, instead of total volume sales, 76% of the most popular spirits don’t meet minimum pricing compared to 74% in beer, 54% in cider and 12% in wine.
Blended Scotch and vodka would be affected most. Blended Scotch, overall, will require average prices to rise 20% to meet the threshold, while vodka will require a 16.3% rise.
Marika Praticó, senior client manager at Nielsen, said there were a number of implications. “Overall, wine will need to raise prices by the least amount, thus, it becomes more affordable relative to other alcohol,” she said.
“It’s a good time for people to trade up to the more expensive brands, which is likely to have a negative impact on supermarkets’ own-label offerings.”