Study Into Alcohol Pricing And Promotions

Wednesday, 29 September 2021 at 11:48

An investigation has been launched into alcohol price promotions in Jersey pubs, clubs, and off-licences.

The study has been requested by Jersey’s Attorney General 'following changes in the market and in international best practice.'

It will take four months to complete and will consider how price-setting rules affect competition and consumer choice.

The study will focus on two-for-one offers, happy hour discounts and the impact of selling alcohol at less than the minimum 50p per unit.

“The study is specifically looking at pricing and promotions as contained in the Guidance issued by Jersey’s Attorney General. Examples of this in on-licence premises, are buy one drink, get one free, or happy hours. In off-licence premises, it would be selling drinks at a price lower than the established 50 pence per unit of alcohol. We will look at comparable international experience, and analysis of past precedent and case studies. Interviews will be conducted with stakeholders and surveys used where appropriate.” - Peter Hetherington, Senior Economic Case Officer.

The study comes after what has been a very difficult 18 months for the hospitality industry as a result of restrictions imposed during the coronavirus pandemic.

A report will be published to explain the findings and recommendations.

The States Assembly approved a proposition in October last year to allow Jersey bars, pubs, and restaurants to offer promotions on drinks.

That was subject to approval from the Licencing Assembly.

Former Jersey Hospitality Association CEO Simon Soar said all drinks promotions would achieve would be an increase in government revenue, as it will get the same impot duty from each drink sold. while the business selling it would receive less in return.

A separate bid, made at the same time, to review the island-wide pricing of alcohol was rejected by a single vote.