Minumum Price For Alcohol Question

[Starfighter]

News reports indicate the Scotish Government is to move forward with a minimum price of 50p per unit on alcohol. The implication was that a bottle of wine would go from around £3.50 to £4.33.

Question - Where does the addditional cash paid be the consumer go?

Does the retailer get to trouser this? Does the money go back to the makers? Does the government take the difference and if so how would this be calculated?

[EDLT]

It all goes to Berwick-Upon-Tweed and Carlisle.

[nellyleelephant]

Retailer, according to Radio 2 earlier.

[davepoth]

EDLT said:

It all goes to Berwick-Upon-Tweed and Carlisle.

[Starfighter]

Thanks Nelly. I was listening to various reports on radio and TV but noone actually said.

Call me a cynic but when a government is involved I'm always curious about where the money comes from and goes to. In this case it would appear that the price rise goes directly to the retailer minus the cost of determining the number of units to in each product. The retailer also trousers the increase in prices on the products just above them in the price structure so as to maintain the price separation and then the government takes the increase in VAT on the whole lot. Probably followed by an increase in duty on all beer, wine and spirits with the argumant that it won't impact the minimum price.

[davepoth]

Starfighter said:

Thanks Nelly. I was listening to various reports on radio and TV but noone actually said.

Call me a cynic but when a government is involved I'm always curious about where the money comes from and goes to. In this case it would appear that the price rise goes directly to the retailer minus the cost of determining the number of units to in each product. The retailer also trousers the increase in prices on the products just above them in the price structure so as to maintain the price separation and then the government takes the increase in VAT on the whole lot. Probably followed by an increase in duty on all beer, wine and spirits with the argumant that it won't impact the minimum price.

I think the idea is that volume will drop accordingly; people will still spend the same on alcohol, but will get less. The retailers will only gain from not having to move and stock so much.

[10 Pence Short]

If the retailer has to put more margin on the product, I'd imagine they will initially get the extra income (though they may suffer lower sales as people move to other, cheaper products). The manufacturers/wholesalers may decide it's unfair that the retailers are the ones trousering the additional margin, so may choose to raise prices charged to retailer to balance things out.

[BoRED S2upid]

Where can you buy a bottle of wine for £3.50?

It will go to the government its a tax on alcohol.

[Starfighter]

BoRED S2upid said:

Where can you buy a bottle of wine for £3.50?

It will go to the government its a tax on alcohol.

Tesco / Asda etc special offers.

Admittedly I did not mention it being a decent bottle!