MUP had no 'significant' economic impact on Scottish drinks industry

Minimum unit pricing (MUP) has had no economic impact on the alcoholic drinks industry in Scotland, a report has found.

MUP has been in force since 2018 - following a protracted legal battle - and placed a minimum charge of 50p on each unit of alcohol.

Concerns were raised ahead of its enforcement about its impact on the drinks industry, but a report commissioned by Public Health Scotland found no significant economic ramifications.

Researchers looked at five indicators of performance within the industry; the number of businesses, employment, total sales, value of output and gross value added (GVA), as well as conducting interviews with industry figures.

"The consistent message the researchers heard was that the new equilibrium of industry performance in Scotland was characterised by lower volumes but higher prices that largely balanced out, with no reported direct impacts of MUP on store or facility openings or closures or staffing," a briefing issued alongside the report added.

"There were one or two individual smaller or specialist retailers who perceived that MUP had reduced their revenues or profits or limited opportunities for growth, though not to an extent that affected staffing or store viability, while others reported no impact."

MUP could have impact on industry in other ways

But the report stressed that, while the researchers did not find a significant economic impact, MUP may have had an effect on the industry in other ways - with impacts felt in patterns of consumer and retailer purchasing.

The study also found the initial impacts caused by MUP were felt in the first few years, with "almost everyone we spoke to for our case studies" suggesting the policy was not a "major day-to-day concern".

Andrew Leicester, the associate director and lead researcher at Frontier Economics, said: "Our analysis of detailed quantitative data broken down by country and sub-sector of the alcoholic drinks industry does not find compelling evidence of observable impacts of MUP on industry performance in the years immediately following its introduction.

"Case study interviews from across different parts of the industry largely validate this view, recognising that MUP clearly did affect the behaviour of producers and retailers to adapt rapidly to new limits on pricing but not in ways that appear to have significantly affected overall industry performance in the medium-run."

While interim head of evaluation at Public Health Scotland, Neil Craig, said: "The report provides important evidence on how MUP has affected the alcoholic drinks industry in Scotland.

"We will bring this together with the other published evidence on the impact of MUP on a range of different outcomes, including hospitalisations and deaths.

"This will be published in a final, overarching report to be published later this year

Drinks industry responds

A spokesperson for the Scotch Whisky Association - one of the key voices against MUP before it became law - said the study forms part of an "overall evaluation" of the policy, adding: "Meanwhile, we continue to work in partnership with a range of stakeholders to promote responsible drinking and to tackle alcohol-related harm."

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• alcohol
• minimum price of alcohol
• Scotland