Why The Alcopop Tax Is Working - Australian Drug Foundation

Main Category: Alcohol / Addiction / Illegal Drugs
Article Date: 29 Jul 2008 - 2:00 PDT

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The Australian Drug Foundation (ADF) took aim at the liquor lobby for misleading the public about the Federal Government's tax increase on ready-to-drink beverages (RTDs).

ADF spokesperson Geoff Munro says we should be careful about how the alcohol industry is interpreting the figures:

"The industry is being misleading. Increasing taxes is a proven and effective method of decreasing sales of alcohol to young people. There is no proof that subsequent spirit sales are to underage drinkers, rather than adults who also purchased RTDs.

"This tax will work on young people. If the decrease in RTD consumption has resulted from the decrease in availability to this group, then the tax must be praised as a success. What's more, by preventing future drinkers from being introduced to alcohol so early in life, this tax will prove most worthwhile," says Mr Munro.

Recent evidence indicates that the RTD tax is having an impact, with sales of RTD beverages down almost 30%. The liquor industry's claims that young people have simply switched to bottled spirits is unproven, especially when the evidence is considered:

1. Young people are known to be price sensitive,
2. Young people cannot legally purchase bottled spirits,
3. Parents are reluctant to buy "hard liquor" for their teenage children.

The ADF says the figures released by the Liquor Merchants of Australia are inconclusive.

"Their statistics showing alcopops have declined by 30% while spirits sales have increased by 46% doesn't tell us anything about young people's drinking. As many RTD drinkers are adults they may now be buying bottled spirits. The real effect of any tax increase won't be known for at least 12 months," comments Mr Munro.

The alcohol industry is not an impartial contributor to this discussion and their opinions should not be taken at face value. Mr Munro says:

"The liquor lobby has rejected every suggestion made by governments and health advocates in relation to reducing alcohol-related harm - including tax increases, lockouts and warning labels. Underage drinkers currently contribute $216 million to liquor companies every year so it is in the industry's best interests to continue to attract them as customers.

"The best evidence of how well this tax is working, is how vehemently the industry is fighting against it!"

The RTD tax directly addresses making these alcoholic products less attractive and accessible to young people. Research shows that RTDs are the most popular alcoholic beverages for 12 - 15 year old drinkers, who are especially vulnerable to the long-term effects of alcohol use. Use of RTDs among young people is increasing, with ABS data showing 60% of female drinkers aged 15 - 17 consumed an RTD in 2007 compared to 14% in 2000. Alcopops are also the drink of choice for both male and female binge drinkers aged 14-19.

Australian Drug Foundation