UK trade associations representing the alcohol and retail sectors have joined forces to condemn the Scottish Government’s proposals for a ban on alcohol advertising and promotion.
Nine trade bodies representing beer, wine, spirits and retailers, in addition to the Retail of Alcohol Standards Group (a panel of major UK retailers), have signed a joint letter warning that, if the proposals go ahead, they will cause significant harm to Scotland’s businesses and will ultimately push up prices for consumers.
This follows a similar open letter sent earlier this month from Scotland’s distilleries and brewers, voicing concerns that banning alcohol from sponsoring sports and cultural events and removing branding from pubs could destroy Scotland’s drinks industry.
The trade bodies, united under the umbrella of the Scottish Alcohol Industry Partnership (SAIP), argue that the ban would not reduce harmful drinking and is likely to push up crime.
The letter states: “There is no specific evidence which shows that restricting the ability to promote and responsibly market products, including low and no alcohol products, in store, will lead to a reduction in alcohol sales or alcohol consumption.”
It goes on to highlight: “Retailers throughout Scotland go to great lengths to ensure that they have the correct licences to retail alcohol, that products are labelled according to UK labelling requirements, that products are placed in stipulated areas as per the Premises Licence and that products are sold for at least the minimum unit price.
“Moving alcohol to the back of stores or to closed off areas will hinder a store’s ability to comply with the licensing objective of preventing crime as colleagues at the tills would not be able to visually monitor those areas.”
The letter also points out that it’s not just businesses which will suffer from the measures.
“It would cost a minimum of £15,000 a time to relay smaller convenience stores and £25,000 a time for larger stores, even with no new equipment - some retailers have suggested costs could be significantly more.
“With the suggestions of installing barriers, moving alcohol away from windowed areas, enclosing alcohol behind opaque doors or even having a closed off and separate area within stores for alcohol, retailers would incur very substantial costs when their top priority is seeking savings that they could pass on to customers.”
Calling on the Scottish Government to support industry, the letter concludes: “The measures as they stand will needlessly hold our country back, to the detriment of Scottish society: restricting consumer choice, increasing costs, and threatening the thriving economic contribution of our sector to the wider community.”
The letter was signed by the following bodies:
- Adult Non-Alcoholic Beverage Association.
- Association of Convenience Stores.
- Retail of Alcohol Standards Group.
- Scottish Alcohol Industry Partnership.
- Scotch Whisky Association.
- Scottish Beer and Pub Association.
- Scottish Grocers’ Federation.
- Scottish Retail Consortium.
- Scottish Wholesale Association.
- The Society of Independent Brewers.
- Wine & Spirit Trade Association.
Meanwhile, the Scottish Conservative Party has warned that businesses could fold if the Deposit Return Scheme is brought in by Holyrood in the summer, urging SNP backbenchers to “prevent Armageddon” and back a bid to pause its introduction.
The scheme has attracted anger from industry figures, who have said it could impose potentially fatal costs on their business and create a trade barrier between England and Scotland, but campaigners in favour have said it could cut carbon emissions and reduce litter.
Conservative MSP Maurice Golden said, with the battle to succeed Nicola Sturgeon under way, it was the “perfect time for SNP backbenchers to do the right thing and send a clear message to the leadership contenders that the shambolic deposit return scheme is not fit for purpose”.
His party will use the opposition business slot in the Scottish Parliament on Wednesday to urge MSPs to back their motion to pause the scheme’s introduction pending an independent review.
Golden said that businesses were “terrified” and that the current plans would “make many firms unviable and cost thousands of jobs, as well as removing choice from consumers and driving up prices during a cost-of-living crisis”.
Shoppers will pay a 20p deposit when buying a canned or bottled drink and will have the money refunded to them when they take the empty container back for recycling under the scheme.
Every business operating in Scotland which sells canned or bottled drink would be required to introduce a takeback system.
Spearheaded by Lorna Slater, junior minister and co-leader of the Scottish Greens, the deposit return scheme is set be introduced from 16 August.
But Golden, who is convener of the cross party group on the circular economy, said the warnings from firms north of the border “could not be more stark” and the scheme “could force them out of business”.
Irn-Bru maker AG Barr stated in January that the scheme could affect consumer buying behaviour, with the move likely to push up drink prices.
Manufacturers could have to have different labels and barcodes for products sold in Scotland and those sold in the rest of the UK – where a separate scheme is not due to come in until 2025.
Smaller producers have warned they have taken the decision to stop selling in Scotland because of the scheme.
Slater said last week that the scheme would “absolutely” go ahead in August, and it was “all systems go” for the initiative.
But Golden responded: “Despite being years in the planning, we now have six months to go and a policy that is totally ill-equipped, poorly planned and will end up causing more harm than good.”
He added there was “still no clarity on how much of it will work” and that businesses and waste management experts had called for 18 months notice, “but with less than six months to go many details are still not forthcoming”.
Scottish Greens environment spokesperson Mark Ruskell said the Scottish Tory resistance to the scheme shows they are “anti-planet”.
He said a successful scheme “has the potential to completely reset Scotland’s relationship with tackling litter as part of a circular economy”, adding: “That is habit-forming for society and, as we have seen in other countries, it is completely workable.”
Ruskell continued: “It is good for our environment and for the many businesses who will want to play a responsible role as part of the solution.
“Which is why the almost hysterical misinformation emanating from the Tories on the subject is more akin to the stuff we’d see in a movie such as Don’t Look Up than it is from any serious politician. It is desperate stuff.”
A Scottish Government spokesperson said: “We understand that this is a big change, especially for smaller businesses, and Scottish ministers continue to work with affected businesses to address outstanding concerns and ensure the scheme launches successfully.
“We have always said that we are committed to a pragmatic approach to implementation, and encourage those with concerns to raise them constructively.”
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