Jeremy Beadles column March 2009

The health lobby probably thought the Chief Medical Officer's message on minimum pricing was exquisitely timed. What could be better? Fire a broadside against the drinks industry just as we're about to call on the Chancellor to think again about the tax escalator on alcohol.


But the very notion of minimum pricing is flawed and perfectly ill-timed when one considers the wider world and the problem at hand and, judging by the swift reaction from Downing Street, some senior Ministers understand this.


The very idea that people who are desperate to acquire something will be put off by price doesn't stack up. In fact raising the price of something hits everyone and is most likely to deter those with least money.


The hard evidence to support this is contained in the latest survey we commissioned from Wine Intelligence. It confirms that those who typically spend least on a bottle of wine are those most likely to be cutting their spend on wine at the moment.


The findings are borne out by Nielsen data showing sales of wine fell by 11% last year. Analysts believe that while spending at upper price ranges is proving more resilient this is attributable to a switch from pubs and restaurants to home. At the bottom end people on lower budgets are simply being forced out of the category.


Then there's the recession affecting us all. Punishing everybody but particularly those with least cash doesn't sound like a winning platform for a Labour politician during the most serious recession for a generation.


If we really want to address the problem of alcohol misuse we need to look beyond price and the simplistic calls to drive up prices by inflicting punitive increases in excise duty.


We need to look at education and far more rigorous enforcement of the laws we have to combat alcohol misuse. We could also use some perspective. If alcohol consumption is falling, and it is according to the government's own figures, why are some people talking about ever more severe measures to reduce alcohol sales? Apparently some Ministers can see the irony.

Jeremy Beadles is chief executive of the Wine and Spirit Trade Association

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