The combination of high taxes and a weak sterling is attracting Christmas shoppers to Northern Ireland on the run up to Christmas to purchase alcohol at highly discounted rates.
This is having a detrimental impact on exchequer returns, local economies and jobs warned the Drinks Industry Group of Ireland’s (DIGI).
Research shows that on average a bottle of whiskey is €4.01 more expensive in the Republic of Ireland. Tax differences and decline in the value of sterling make the average Christmas alcohol spend a staggering €53.17 cheaper in the North.
Commenting on the price difference post Brexit, Donall O’Keefe, Secretary of the Drinks Industry Group of Ireland and CEO of the Licensed Vintners Association said, “We pay the highest prices for alcohol in Europe driven by our very high taxes and the fall in the value of sterling is making it an economic reality for shoppers to cross the border this Christmas. This will have huge repercussions for jobs and businesses across Ireland and could decimate local economies in the border counties.”
A recent report from analysts Goodbody showed a substantial rise on the number of Christmas shoppers heading North early on Saturday mornings to make purchases AM.
O’Keefe added, “A recent poll by Red C for the Sunday Business Post found that 56% of those living in border counties intended to shop over the border in the run up to Christmas and with cost savings of this magnitude available, it’s hardly surprising. A recent report from analysts Goodbody showed a staggering 29% jump in the number of trips to Northern Ireland between 10am and 11am on Saturday mornings. The Government needs to fast-track competitiveness-boosting measures and look again at excise duties which are not only driving shoppers over the border but impacting our tourism offering and competitiveness over the medium term”.
The Drinks Industry Group of Ireland is the representative group for the drinks industry in Ireland.
© 2016 - Checkout Magazine by Donna Ahern