Off-licencees say tax rise means spirits flagging

SALES of spirits have taken a nosedive since the Government increased taxes in the last budget, according to the National Off-Licence Association Spokesman Jim McCabe said yesterday that while no figures are available since the December budget, the body’s members around the country had seen a “huge” decline in sales of spirits.

“I would be interested to see the figures when they are available because the budget did have an effect,” Mr McCabe said. “It was disastrous as far as sales of spirits are concerned.”

The increase added several euro to the price of a bottle of whiskey, vodka and brandy, making home drinkers more reluctant to drop a bottle in their shopping trolley.

The off-licence representative group’s claim came as another report indicated cider sales in Ireland have plummeted by more than 10% since the finance minister increased duty on the drink in 2001, raising the price of a pint of cider was by 21 pence (26.6 cent).

Yesterday’s report revealed cider sales last year fell 10.3% to 74.1 million litres after Charlie McCreevy raised the duty to the same level as that on beer.

Beer drinkers also cut down on their tipple, with sales down 0.41% to 595m litres.

Wine sales, which had soared in recent years, are now growing at a slower rate, up 11.5% in 2002 compared to previous rises of as much as 20%.

Sales of brown spirits were down by 1.6%, while white spirits were up by 6.4%.

However, this jump took place before Mr McCreevy’s recent increase in tax on spirits.

In a trend seen as worrying by the Government and health authorities, sales of so-called ‘alcopops’ - sweetened and flavoured spirit mixtures drunk mainly by younger drinkers - were up a massive 43.5%.

Mr McCreevy’s 35c per bottle tax on such drinks in the most recent budget may see a downturn in sales this year. The other figures, meanwhile, suggest economic uncertainties are directly hitting consumption.