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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. 37 p.

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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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