OnDemand WTP Pricing Research

Alcohol prices: National Alcohol Strategy suggests floor pricing for standard drinks | news.com.au

WINE lovers and young drinkers would be hardest hit by a government proposal to increase booze prices.

A draft strategy released by federal government ministers, which aims to significantly reduce Australians’ alcohol consumption, has recommended a “minimum floor price” for alcohol.

The pricing plan would prevent the cost of all alcoholic drinks from dropping below set prices, with those in the industry expecting a base price of $1.50 per standard drink, the Herald Sun reports.

They expect this would translate into jumps in the cost of some of Australia’s most popular drinks, including a cask of wine skyrocketing from about $10 to $45, a slab of beer rising from about $47 to over $50, and a budget bottle of sparkling wine costing $10, up from $7.

“Evidence demonstrates that influencing the price of the cheapest drinks on the market by establishing a floor price has a larger impact on total consumption than does increasing the price of more expensive drinks, which tends to product shift in product preference.”

The report said research suggested younger people were “especially responsive to changes in alcohol price”.

Read complete article here:

Alcohol prices: National Alcohol Strategy suggests floor pricing for standard drinks.