Whisky Minimum Pricing Will Cost Jobs

[John]

One of the world's leading Scotch whisky suppliers has warned it might have to cut hundreds of Scottish jobs, under plans for minimum drink pricing.

Whyte & Mackay said the government-proposed move would force it to compete with more expensive, premium brands.

The Asda, Morrisons and Sainsbury's supermarket chains have also expressed concern about the plan.

Scottish ministers have said radical action was needed to tackle the nation's alcohol problems.

The SNP has brought forward minimum pricing, along with a series of other measures, in its Alcohol Bill, but the minority government's plan is likely to be blocked by opposition parties.

John Beard, chief executive of Glasgow-based Whyte & Mackay, which supplies "own brand" and branded Scotch whisky to supermarkets, said he shared the government's concern about alcohol abuse.

But, in a submission to Holyrood's health committee, which is scrutinising the bill, Mr Beard said minimum pricing would "decimate the own label market", warning: "This will lead to significant job losses at Whyte & Mackay, across our distilleries, our bottling plant and our distribution centres."

Ministers have yet to set the minimum price per unit of alcohol under the plans, but Mr Beard said that, based on an example of 50 pence, a bottle of own label whisky would rise by 37%, to £14.

He said that would mean own label products losing their "competitive advantage" and having to compete with brands such as Famous Grouse and Bell's Whisky.

"We anticipate that our bottling plant in Grangemouth, which employs 200 people, would close," said Mr Beard.

"Our production levels would also be affected so there would be a knock-on effect at our distilleries - our best estimate is that another 100 jobs would be at risk."

A distillery at Invergordon distils whisky for the "own brand" market.

And, in a warning to ministers, the Whyte & Mackay chief said: "If we were to lose that many jobs, and lose that significant profit, there is no way Whyte & Mackay could continue working with government to fund and promote responsible drinking initiatives."

Also in a submission to the committee, the UK's second largest supermarket, Asda, welcomed action on alcohol abuse, but said the debate had become too focussed on pricing.

The company said that, out of a survey of 10,109 Asda shoppers in 30 Scottish stores, 61% of respondents disagreed with minimum pricing.

Morrisons corporate affairs director Richard Taylor said minimum pricing may have little or no effect, adding: "The only certainty that minimum pricing would bring is imposed higher costs to customers. This is neither proportionate nor fair."

And Sainsbury's said higher alcohol pricing would simply hit people on fixed incomes.

"We do not believe that minimum pricing will do what it is intended to - reduce problem drinking," said the chain.

"A whole population approach is unfair. It will not discourage problem drinkers but punish the responsible majority."

The Scottish government said a minimum-pricing policy - which has been backed by all four UK Chief Medical Officers, other health experts and the police and licensed trade - would reduce alcohol consumption and save lives.

The Alcohol Bill also includes proposals to ban drink promotions, powers for licensing boards to raise age for buying drink from 18 to 21 and a "social responsibility fee" for retailers who sell alcohol.

In January, one of Scotland's biggest alcohol brands - Tennent's - said it would back the minimum price plan.

John

Source: BBC News

[Keith]

I see Whyte & Mackay have apologised over the price claim.

From the BBC site:
Whyte & Mackay has said it is sorry if it misled anyone over the case it made against minimum drink pricing.

Giving evidence on Scottish government plans to bring in the policy, the company claimed it might have to cut 300 jobs if the move was implemented.

White & Mackay later clarified that the scenario was based on a UK-wide introduction of minimum pricing.

W & Ms assessment, which would see a bottle of own label whisky rise in price by 37% to £14, was based on a minimum price of 50 pence per unit being introduced across the UK rather than just in Scotland.

If you are interested the full story is here:
http://news.bbc.co.uk/1/hi/scotland/8558421.stm

Keith