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Home > Understanding the link between alcohol excises and the price of alcoholic drinks in UK supermarkets using scanner data.

Panzone, Luca and Albani, Viviana (2020) Understanding the link between alcohol excises and the price of alcoholic drinks in UK supermarkets using scanner data. London: Alcohol Change UK.

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Key findings

  • The alcoholic drinks market is characterised by an incomplete pass-through: for every £1 tax increase only £0.66 is passed onto the price.
  • The pass-through varies by store formats and product volumes.
  • The tax stimulates consumers to move away from products with a higher post-tax price to products with a lower post-tax price within a category.
  • Increases in excise vary strategically to protect certain products (e.g. the most common size) over others.
  • While the results support the idea that alcohol excises can change behaviour by increasing prices, they are less effective than they should be.

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