Saturday, September 4, 2010

Loaded

“Pre-loading” – that is, fuelling up on cheap off-trade alcohol before going on a night out – is often seen as a major factor behind drink-related disorder, and this is used as a justification for increasing the price of drink. Now, I’ve no doubt that a certain amount of pre-loading does take place, but overall it must only account for a tiny proportion of off-trade consumption, so to use that as a reason for an overall price hike seems like punishing the majority for the sins of the minority. And even if the price of a bottle of vodka was raised by 50%, it would still be much cheaper than drinks in the pub.

But I thought it would be interesting to ask readers of this blog whether they ever indulged in pre-loading themselves. The question was “Have you ever “pre-loaded” before going out for a drink?” and there were 72 responses, broken down as follows:

I currently do it often: 4 (6%)
I currently do it occasionally: 8 (11%)
I used to do it often: 5 (7%)
I used to do it occasionally: 9 (12%)
No, never: 46 (64%)

Perhaps a little surprising, given that I always picture most of the readers of this blog as middle-aged blokes, that as many as 17% of respondents claim to currently do it – maybe some of those who gave that answer would like to comment on the circumstances.

You’d never have thought it

New research by CR Consulting shows that the smoking ban “is demonstrably the most significant cause of pub closures” over the past three years. The article describes it as “shock proof”, whereas I would have thought it was more a case of demonstrating the bleeding obvious, but there are still Gillian Merron-type deniers around who wilfully refuse to believe the evidence of their own eyes. The report predicts pub numbers will continue to fall, with another 1,700 to close in England before the fourth anniversary of the ban in July 2011.

It makes the point – raised more than once by commenters on this blog – that pubs cannot justify a price premium if all they can offer is expecting their customers to stand out in the street. It also explains how the impact of the ban on trade is not a one-off hit, but a slow, gradual process of the “loss of sociability”. It is still closing pubs today, and will continue to do so for many years to come.

Thursday, September 2, 2010

Left hand, meet right hand

The drinks trade certainly seem to be putting out conflicting messages about alcohol taxation at the moment. On the one hand, we have the British Beer & Pub Association saying that the tax system should be set to favour beer, which is the weakest mainstream alcoholic drink, the mainstay of the pub trade, and overwhelmingly home-produced. On the other hand, we have Diageo saying that the tax system should be rebalanced so that all alcoholic drinks are taxed purely on their alcohol content, which would result in a reduction of duty on spirits in comparison with that on beer and wine. Of course, it’s all special pleading, and the anti-drink lobby will no doubt find it amusing that the industry are unable to come out with a consistent message on alcohol taxation.

On balance, I would say that the BBPA are more right than Diageo. The current relative levels of duty do at least serve to roughly balance the selling prices of the different forms of alcohol, and compensate for the fact that spirits, at least at the lower end of the market, are cheaper to make than beer or wine. Also, while it is invidious to claim that one form of alcohol is “better” than another, it is less like hard work to abuse spirits and therefore there is a case for the tax system sending a message that they need to be treated with a certain amount of respect. Tim Martin of Wetherspoon’s isn’t too impressed by Diageo’s stance either.

The Wine & Spirit Trade Association are surely quite right to point out here that:

“It is not possible to single out particular types of alcohol which are consumed by problem drinkers for targeted tax measures. Problem drinkers have access to, and consume the same products as moderate drinkers – it is their drinking patterns which make their consumption harmful.”
Trying to discriminate between different categories of alcoholic drinks on the grounds that some are disproportionately consumed by problem drinkers is a policy doomed to failure, as these drinkers will just move on to something else. While wine is often perceived as the drink least tainted by alcohol abuse, it is worth remembering that cheap red wine was the staple drink of the archetypal French alcoholic of a generation ago.