BEERMAGEDDON
Sharp warning that minimum unit price increase poses a threat to jobs
THE boss of one of Scotland’s leading brewers has warned the government’s “brutal” plans to raise the minimum price of alcohol will lead to job losses across the industry.
Dougal Sharp, chief executive of Innis and Gunn, said firms will be forced to make cuts if the minimum unit price ( MUP) rises from 50p to 65p.
The craft beer specialist warned S c o tt i s h - b a s e d b rewers c ou ld struggle to absorb losses which were already mounting as a result of the UK Government’s 10 per cent rise in alcohol duty last August.
Founded in 2003 by Sharp, Edinburgh-based Innis & Gunn is one of the country’s most popular beer brands. The company has an annual turnover of almost £23million and exports to over 35 countries.
Sharp said: “The aims of these proposals are laudable – nobody wants to see problem
relationships with alcohol.
“But we now have the rate of MUP going up by 30 per cent if it goes to 65p.
“The last time I looked we were in the middle of the biggest cost of living crisis in living memory. It’s brutal for both consumers and businesses.”
Sharp said the current MUP level already applied to most drinks so it didn’t affect costs but now the price of craft beers, wines and spirits will rise. He
said: “It is going to cost every consumer of alcohol in Scotland around 30 per cent more now.
“It will drive demand down and simply sell less product.
“That will affect businesses who are predominantly based and do trade in Scotland more than it will affect global and multinational companies.
“Companies will have to make savings and cuts, which means jobs will be lost.”
Neither the government nor alcohol producers benefit from
the MUP level, with any profit going to retailers.
Under the plans, the cost to shops of buying products from suppliers will remain the same, although supermarkets will have to charge more.
Campaigners have suggested the extra money raised through MUP be put towards treatment and rehab places for people addicted to alcohol.
The introduction of MUP has been hailed as a success but latest figures show the number of alcohol-specific deaths rose to its highest level since 2008, with 1276 people dying in 2022.
A Scottish Government spokesman said: “The policy strikes a reasonable balance between public health benefits, any effects on the alcoholic drinks market and impact on consumers. The Public Health Scotland evaluation of MUP suggests there has not been a significant impact on business and industry as a whole, but we continue to monitor this.
Companies will have to make cuts... jobs will be lost DOUGAL SHARP FEARS FOR INDUSTRY WORKERS
“We are determined to do all we can to reduce alcoholrelated harm.”
Dr Alastair MacGilchrist, chairman of Scottish Health Action on Alcohol Problems, said the rise in prices offsets the reduction in sales for retailers and that the MUP policy “has done no damage” to the Scottish economy or alcohol industry.
He added: “Increasing the level of MUP will also greatly reduce alcohol-related hospitalisations and will decrease the burden on overstretched NHS.”
Alison Douglas, CEO of Alcohol Focus Scotland, said MUP was “life-saving”.