Lithuanian National Tobacco and Alcohol Control Coalition (onward – Coalition) is NGO uniting 28 local NGOs and is actively working in the field of alcohol and tobacco control policy since 2004. Coalition focuses on implementation of evidence-based effective control and prevention measures of psychoactive substances and therefore strongly supports such initiatives in all countries which attempt to tackle alcohol epidemic.
In March 2012, the UK government announced support for Minimum Unit Price (onward – MUP) in its new alcohol strategy. The Government has announced that the initial MUP will be 50p (0.63 euro) per unit (8g or 10mls) alcohol. The Northern Ireland and Welsh government have also supported MUP and legislation is now planned in Northern Ireland. Coalition is strongly supporting MUP.
Among the various strategies that countries use to control alcohol-related problems, the regulation of alcohol taxes and prices has been by far the most popular. Price and tax regulation measures are relatively easy to establish and enforce. And most important it works: alcohol consumption and related harm is reduced with increased alcoholic beverage price. This was proven by many economic studies conducted worldwide. Based on scientific evidence controls on price and availability have been identified by the World Health Organisation the most effective measures that governments can implement to reduce the harm caused by alcohol[1].
Increased taxes do not automatically translate into increased prices. Alcohol producers and retailers, in particular large supermarket chains, sometimes offset tax increases by reducing prices. One way to control this outcome is to introduce a legal minimum price per gram of alcohol. The impact of this measure was tested in Canada where minimum alcohol prices in British Columbia were adjusted intermittently over the years 1989–2010. Time-series and longitudinal models of aggregate alcohol consumption with price and other economic data as independent variables found that a 10% increase in the minimum price of an alcoholic beverage reduced its consumption relative to other beverages by 16.1%. Time-series estimates indicated that a 10% increase in minimum prices reduced the consumption of spirits and liqueurs by 6.8%, wine by 8.9%, alcoholic sodas and ciders by 13.9%, beer by 1.5% and all alcoholic drinks by 3.4%[2].
According to research conducted in England, 59% of the alcohol sold for consumption elsewhere (“off trade”) and 14% of the alcohol sold for consumption on the premises (“on trade”) is sold for less than 5 pence (£0.05/€0.06) per gram of alcohol in England. The same study estimates that setting a minimum price of 5 p/g (€0.06/g) would reduce overall consumption by 2.6% (3.4 g reduction per week). It estimated that annual deaths would decline by 157 in the first year and by 1381 after 10 years. Annual hospital admissions would fall an estimated 6300 in the first year, and 40 800 after 10. The intervention would also lead to an estimated decline of 16 000 criminal offences during the 10 years modelled. During the same period, the study predicted that there would be 12 400 fewer unemployed people and 100 000 fewer sick days. The study estimated the value of these harm reductions to society as £5.4 billion (€6.2 billion) over 10 years. The estimated value of this minimum price policy for the first year includes National Health Service savings (£25 million/€29 million), value of QALYs gained through better health (£63 million/€72 million), crime costs saved (£17 million/€19 million), value of crime QALYs gained (£21 million/€24 million) and employment-related benefits (£312 million/€356 million).[3]
Existing modelling studies have shown that a minimum price reduces the health burden of alcohol and incurs very little out-of-pocket expenses for light drinkers.[4] This measure ensures that tax changes result in the desired changes in retail price and affordability, which price cuts can otherwise circumvent. Therefore Coalition strongly supports minimum pricing initiative in Scotland. All Lithuanian public health and alcohol control community is waiting for this alcohol policy break in Europe.
Dr. Aurelijus Veryga
President of National tobacco and alcohol control coalition
[1] World Health Organisation Europe 2011, European Alcohol Action Plan 2012-2020: Implementing regional and global alcohol strategies, Geneva.
[2] Stockwell T et al. (2012). Does minimum pricing reduce alcohol consumption? The experience of a Canadian province Addiction, vol. 107, issue 5.
[3] Meier P et al. (2008). Independent review of the effects of alcohol pricing and promotion: Part B. Modelling the potential impact of pricing and promotion policies for alcohol in England: results from the Sheffield Alcohol Policy Model Version 2008 (1-1). London, England Department of Health (http://www.shef.ac.uk/polopoly_fs/1.95621!/file/PartB.pdf, accessed 10 September 2012).
[4] World Health Organization (2009). Handbook for Action to Reduce Alcohol-related Harm. WHO Regional Office for Europe, 2009 (http://www.euro.who.int/__data/assets/pdf_file/0012/43320/E92820.pdf, accessed 10 September 2012)