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Retail

Nielsen: Minimum Pricing To Impact 50% Of Scottish Alcohol Sold

Following analysis of till sales from nearly 1,200 stores in Scotland, market research firm Nielsen has concluded that over 50% of alcohol sold in Scotland won't meet the impending minimum-price legislation.

Of the 50 most popular choices in each category, 76% of spirits, 74% of beer, 54% of cider and 12% of wine were found short of meeting the minimum. Measuring volume sales, 69% of Blended Scotch and Vodka currently sold below the 50p per unit threshold, followed by beer (67%) and Cider (51%).

Commenting on the finding that only 3.5% of wines currently fell short of the minimum, Marika Praticó, senior client-manager at Nielsen said she expected wine to gain from the legislation, by becoming the more affordable option, relative to other drinks.

With regard to spirits, she noted that enforced price increases could result in increased revenue as long as demand didn't fall beyond the "tipping point" of 12.5%.

Considering other side effects of the new legislation, she expected stockpiling to precede the new pricing legislation and an increase in cross-border alcohol shopping following the change, foreseeing a "near extinction" of major price-saving deals, offered by retailers.

© 2016 European Supermarket Magazine – your source for the latest retail news. Article by Martha Sparrius. To subscribe to ESM: The European Supermarket Magazine, click here..

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