Independent Liquor Welcomes Informed Debate

Independent Liquor has welcomed today’s release of the Otago University research paper on alcohol pricing as an important addition to informed public debate on alcohol. 

General Manager Julian Davidson, of Independent Liquor’s New Zealand operations, said today: “Significant decisions in respect of liquor laws will be made over the next 12 months and it is critical that there is informed debate at community and government levels.” 

He supported the point made by the Alcohol Advisory Council: “It’s not what we drink, it’s how we drink”, and called for all alcohol to be regulated in a consistent, common manner.  

“We would like to make it absolutely clear that Independent Liquor New Zealand agrees with the

Government’s stated objective of reducing alcohol-related harm. We believe that the

objective can best be met through evidence-based reform. 

“This University of Otago paper shows that there is insufficient information available to the community regarding the consumption of alcohol and why evidence based reform is vital.”  

Mr Davidson said the data comparing the prices of wine, beer and spirits highlighted the fact that cask wine was the cheapest way to purchase alcohol in New Zealand.  

“What is missing from the reported data, is the fact that spirits pricing can be split again into full strength spirits, 700ml to 1 litre bottles of up to 40% alcohol, and RTDs, 250ml to 440ml which are 5% to 8% alcohol.” 

Mr Davidson noted that when the spirits data was divided between full strength and RTD products, the following pricing comparison was apparent: 

Cask Wine  price per standard drink  $0.84

Full strength spirits price per standard drink  $1.18

Beer   price per standard drink  $1.33

RTDs   price per standard drink  $1.91

(Source: Super Liquor advert/website 14/10/10) 

Mr Davidson said, “Despite commonly held views, RTDs are the most expensive way to consume alcohol in New Zealand and are not the main beverage of choice for 15 to 24 year olds”.

(Source: Neilsen Media Panorama Survey May 2010 attached) 

He also highlighted the view of the Law Commission that noted:“Some experts consider that young people would be likely to switch products in order to obtain cheap alcohol if measures were introduced to single out RTD’s by increasing their price or removing them from the market “

(Source Alcohol in our lives: Chapter 22, paragraph 22.9) 

“In our view, based on experience gained from similar reforms in Australia, the current reforms, as drafted would have exactly this result”, Mr Davidson said.  

ENDS

Background 

• Independent Liquor markets popular RTD’s and beers, including Woodstock and Vodka Cruiser RTDs, together with Carlsberg, New Zealand Pure, and Ranfurly beers.
• Independent Liquor has 60% share of the NZ RTD market and 11% of NZ packaged beer market.
• The Independent Liquor submission to the Law Commission is available via email on request.
• Independent Liquor’s Red Book of Facts on RTDs and Alcohol in NZ is available via email on request.