Minimum Unit Pricing (MUP) Continuation and future pricing: Business and Regulatory Impact Assessment

9. CONSUMER ASSESSMENT

Q1. Does the policy affect the quality, availability or price of any goods or services in a market?

Price

Minimum Unit Pricing places a floor on the price at which alcohol can be sold based on the alcohol content in the drink. The aim of the policy is to increase the price of high strength, low-cost alcoholic products in order to reduce the health harms associated with consumption of these. The proposed minimum unit price level of 65ppu has been selected so as to balance the benefits of reduced health harms against the costs to consumers and businesses of higher prices for certain products.

The introduction of MUP at 50 pence per unit in 2018 was associated with an increase in the average price of alcohol sold in Scotland. However, there was no strong evidence that the prices of products not directly impacted by MUP increased to maintain a price differential.^[189]

Availability

There are no direct restrictions on the availability of products in the market. Products which would be sold below the minimum unit price in the absence of the policy can continue to be sold as long as they are retailed in compliance with the minimum unit price.

Evidence suggests that the introduction of MUP at 50 pence per unit in 2018 was not associated with an increase in the number of products introduced or discontinued in Scotland.^[190] Given the relatively small increase in the MUP level in real terms we would not expect to see significantly different results following the increase in MUP.

Quality

There are no direct restrictions on the quality of products sold in the market. The quality of alcoholic beverages is a subjective measure based on the preferences of consumers. The overall market assessment of the quality of a product will be largely reflected in its price – i.e. higher quality products have a higher price due to both a higher demand and higher production costs (more expensive inputs, longer maturation time, increased quality control). The policy is intended to target high strength, low-cost products which will typically not include products regarded as ‘premium’.

Evidence suggests that the introduction of MUP may have contributed to the continuing trend of the ‘premiumisation’ of the alcohol market, with consumers purchasing less volume but higher quality products.^[191]

Q2. Does the policy affect the essential services market, such as energy or water?

No

Q3. Does the policy involve storage or increased use of consumer data?

No

Q4. Does the policy increase opportunities for unscrupulous suppliers to target consumers?

No

Q5. Does the policy impact the information available to consumers on either goods or services, or their rights in relation to these?

No

Q6. Does the policy affect routes for consumers to seek advice or raise complaints on consumer issues?

No