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VFI Backs Minister’s Stance on Below Cost Selling of Alcohol

19-October-2011

The Vintners’ Federation of Ireland (“VFI”) today backed calls by Minister of State Roisin Shortall to tackle alcohol misuse and specifically the plans to introduce a minimum price at which alcohol can be sold.

The VFI has long called for the Government to look at the pricing strategies of supermarkets in Ireland and to curb the availability of cheap drink which is being sold in an uncontrolled environment and promoted and marketed in an irresponsible fashion.  

The CEO of the VFI, Padraig Cribben said, “The VFI is strongly in favour of developing a mechanism to prevent the current practice of the irresponsible promotion and sale of alcohol in the supermarket sector.

“The Minister stated yesterday (Tuesday, October 18, 2011) that the introduction of a minimum price would not have a majorly negative impact on jobs. In fact, a minimum price would have a hugely positive impact on keeping people in work.

“7,000 jobs were lost in the on trade sector last year and at least 500 pubs are at risk of closing in the next 12 months, with the subsequent loss of up to a further 4,000 jobs and possibly more, which is eleven times as many jobs which will be tragically lost at Aviva Insurance.

“ The availability of cheap drink in supermarkets is a major contributor to pubs  closing and the introduction of a minimum price that alcohol could be sold at would go a long way to keeping family run pubs trading and saving thousands of jobs throughout Ireland.”

The VFI though also warned that increasing excise levels would be counterproductive. “Increasing excise will only punish the moderate drinker and will not tackle the main culprits which are the supermarkets.

“The big multiples can absorb tax increases on alcohol and will continue to sell alcoholic drinks cheaply as a loss leader while pushing up the prices of other products, especially food, to compensate. In fact a major multiple in the UK recently thumbed it’s nose at the Government by reducing the price of alcohol on the very day excise increased.”

The VFI concluded that it is more than happy to assist in any way possible with developing a fair system and mechanism for the safe sale and promotion of alcohol.

“We feel this practice of below cost selling is wholly irresponsible and is directly leading to related social problems due to the dangerous and uncontrolled consumption of alcohol.