Wednesday, January 20, 2010
Pub Owners Support Minimum Alcohol Prices
The Economist reports on the UK's consideration of introducing a minimum price for alcohol. Not surprisingly, the idea is supported by medical associations and the police. The policy is also supported by pub owners, which initially seems a bit odd. The explanation: prices in pubs are already above the proposed minimum price, so the floor would only affect sales made in competing outlets like grocery stores.
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This assumes that the consumer is willing to substitute the pub environment for the ability to drink at home. Could this possibly just lead to consumers switching their purchasing behavior to higher tiered brands at grocery stores?
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