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SABMiller says a minimum price for alcohol will hit low-income, responsible drinkers

28 November 2012

The introduction of a minimum price for alcohol will unfairly hit responsible drinkers in low-income families, while doing nothing to change the drinking habits of problem drinkers,  SABMiller plc, one of the world’s leading brewers, said today (Wednesday 28 November 2012) in response to the launch of the consultation on the UK Government’s alcohol strategy. 

Pointing to statistics which show that high-income consumers are the most likely to regularly drink more alcohol than the Government’s recommended weekly limit, SABMiller said a minimum price of 45p per unit would impact on lower-income responsible drinkers more. 

Research looking at different types of drinker shows that:   

Hazardous drinkers are defined by the Government as men who drink 22-50 units a week and women who drink 15-35 units, while harmful drinkers are defined as those who drink over 50 units (for men) and over 35 (for women).

SABMiller urges the Government to look at better targeted policies which would genuinely help harmful and hazardous drinkers. Mike Short, SABMiller’s Senior Vice President of Industry Affairs, said:

“There’s a lot in the Government’s alcohol strategy which we agree with, for example local authorities being given more power to deal with anti-social drinking and a greater focus on targeted prevention programmes. As a brewer we also recognise the importance of our role in promoting sensible drinking, particularly when it comes to the responsible marketing of our products. However, we cannot support an unfair and ineffective policy which will be yet another tax on low-income responsible drinkers.”

In addition to concerns about its effectiveness as a policy, SABMiller also believes that government intervention in the market will have a number of unintended consequences for consumers. Gary Haigh, Managing Director of Miller Brands, SABMiller’s subsidiary company in the UK, said:

“If minimum pricing comes in, consumers, particularly those with a limited budget, will be faced with far less choice when they look at the supermarket shelves. ‘Own label’ products are likely to disappear because they can’t compete at the same price against branded products and producers who import into the UK could pull out because it’s no longer a competitive market. It could also make things even worse for our great British pub heritage. It’s already been badly affected by the trend towards at-home drinking and if people have a set budget they’ll have less to spend in the pub.” 

ENDS

  1. Analysis by the Centre for Business and Economics Research using the Office of National Statistics General Lifestyle and Family Expenditure surveys.    
  2. Ibid
  3. London Economics, Differential Price Responsiveness among Drinker Types (a review of all public-health funded research published on the subject)    
     

Notes to Editors

Overview of SABMiller

SABMiller plc is one of the world’s leading brewers with more than 200 beer brands and some 70,000 employees in over 75  countries.  The group’s portfolio includes global brands such as Pilsner Urquell, Peroni Nastro Azzurro, Miller Genuine Draft and Grolsch; as well as leading local brands such as Aguila (Colombia), Castle (South Africa), Miller Lite (USA), Snow (China), Victoria Bitter (Australia) and Tyskie (Poland).  SABMiller also has growing soft drinks businesses and is one of the world’s largest bottlers of Coca-Cola products.

In the year ended 31 March 2012 the group reported EBITA of US$5,634 million and group revenue of US$31,388 million. SABMiller plc is listed on the London and Johannesburg stock exchanges.

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Miller Brands is the UK and Ireland subsidiary of SABMiller, one of the world's largest brewers. Miller Brands has responsibility for the development of SABMiller’s international premium brands across the UK and Ireland; these include Peroni Nastro Azzurro, Pilsner Urquell and Miller Genuine Draft. Through its consistent pricing and distribution discipline, supplemented by engaging marketing activities, Miller Brands is bringing value back into the beer category. More information can be found at www.millerbrands.co.uk.


Enquiries

SABMiller plc
t: +44 20 7659 0100

Rebecca Spargo
Industry Affairs Media Relations Manager
SABMiller plc
t: +44 20 7927 4729
m: +44 7436 546 657
e: rebecca.spargo@sabmiller.com

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