The Federation of Independent Retailers (NFRN) has welcomed the announcement that the Irish government is to introduce a minimum price unit (MPU) on alcohol products next year.
From January 1, 2022, the cheapest bottle of wine will cost €7.75, where previously it could cost under €5.
A 700ml bottle of supermarket gin or vodka costing between €13 and €14 will rise to €20.71 under the system, while a 440ml can of lager will be a minimum of €1.32.
The plan was originally approved in 2018 but implementation has been delayed because the government wished to do this at the same time as Northern Ireland, in order to discourage potential smuggling and consumers travelling to retailers in the north, the group said.
However, Stormont has now indicated it will not be proceeding with similar legislation in the near future, it added.
Martin Mulligan, president, NFRN Ireland said, “We broadly welcome the move to introduce minimum unit pricing because it levels up the playing field. The big multiples have taken our confectionery and Christmas trade, so it will give us all a fighting chance to compete.”
“For years the multiples have been using cheap alcohol as a loss leader. Minimum pricing will help smaller retailers to compete, especially on leading brands,” added Tom McDermott, Clonmel convenience store owner.
On 5 May, it was announced that the Cabinet signed off on a long-delayed plan to introduce a MUP for alcohol from the start of next year in a bid to reduce alcohol abuse and health spending.
© 2021 Checkout – your source for the latest Irish retail news. Article by Donna Ahern. For more drinks news click here. Click sign up to subscribe to Checkout.