Essay: Alcohol Pricing and Consumption Rates

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[. . .] Normally, the core purpose of the guidelines when applied to products by and large is to contain anticompetitive pricing, consequently shielding minute traders as well as manufacturers from the market power of huge traders like the supermarket chains, as well as facilitating up-to-the-minute entrants into the market. These kinds of prohibitions never lay down a minimum price for an item for consumption, to a certain extent; they forbid the sale of items for consumption at a price lower than the trader's cost of operation or a number of alternative thereof.

According to Hastings et al., (2005) it has never been easy to establish study that focuses particularly on the consequences of this kind of ban on alcohol related situations like usage, problems as well as effects on the alcohol industry. On the other hand, authors as well as public health practitioners have added their voice on the use of minimum pricing as well as other related price promotions plus discounts in the alcohol industry. The voices of concern comes from the powerful substantiation that cost impacts consumption as well as problem levels, minimum pricing as well as other promotions that avail alcohol cheaply may perhaps inflate the consumption as well as problems associated with alcohol.

Hastings et al., (2005) brings on board various researches on the effect of general alcohol off- as well as on-trade cost promotions and discounts which he called not looking particularly at minimum-cost sales and he believes that it can be enlightening, even though the substantiation foundation is not properly developed. Brennan et al. (2008) is of the view on probable effects of diverse limitations on off trade price promotions as well as discounts within the United Kingdom is that tougher limitations have escalated impacts on alcohol consumption as well as problems, with a full prohibition on discounting escalating to approximately 2.8% decline in consumption every year which can be said is comparable to the decline from a 40p minimum cost.

It is clear that the study of substantiation on minimum costing is significantly slighter than on duty. On the other hand, obtainable researches modelling the impact of dissimilar levels of minimum costing shows that the guidelines can be effectual in lessening consumption as well as problems particularly when it is targeted at youthful, damaging as well as dangerous consumers who prefer affordable or cheap alcohol. The accessible study also indicates that below pricing would direct to rise in retailers' proceeds. It is also proper to note that study in relation to minimum pricing, nevertheless, has not yet taken into account alcohol manufacturers as well as traders reactions in better element.

Conclusion

There is little development in literature in terms of prohibition on alcohol sales below cost and the obtainable study has mostly tackled the impact of price promotions more extensively than minimum pricing. The fact that these studies conclude that price promotion in a way or the other inflates the consumption as well as intention to consume, it leave the restriction in a pole position to effect the decrease of alcohol consumption and it's problems.

On the other hand, the strapping relationship connecting alcohol prices and alcohol problems presents a convincing explanation for taking into account a variety of pricing guidelines for inclusion into a guidelines mix to handle the said predicament.

Reference

Anderson, P., D. Chisholm and D.C. Fuhr,2009 "Alcohol and Global Health 2 Effectiveness

and Cost-Effectiveness of Policies and Programmes to Reduce the Harm Caused by Alcohol," Lancet, 373,9682, pp. 2234 -- 2246. Retrieved October 25, 2013 from http://www.cabdirect.org/abstracts/20093178397.html;jsessionid=38719635674F266D9B4B19A9970DDF48

Brennan, A., R. Purshouse, K. Taylor and R. Rafia, 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. Retrieved October 25, 2013 from http://www.alcoholconcern.org.uk/assets/files/PolicyandCampaigns/Briefing_paper_on_pricing.pdf

Chaloupka, F., M. Grossman and H. Saffer, 2002 "The Effects of Price on Alcohol

Consumption and Alcohol-Related Problems," Alcohol Research & Health, 26,1, pp.

22 -- 35. Retrieved October 25, 2013 from http://www.icap.org/PolicyTools/ICAPBlueBook/IntroAnIntegrativeApproachtoAlcoholPolicies/tabid/187/Default.aspx

Hastings, G., Anderson, S., Cooke, E. And Gordon, R.,2005 "Alcohol Marketing and Young

People's Drinking: A Review of the Research," Journal of Public Health Policy 26:296-

311. Retrieved October 25, 2013 from http://www.eurocare.org

Meier, P., R. Purshouse and A. Brennan, 2009 "Policy Options for Alcohol Price Regulation:

The Importance of Modelling Population Heterogeneity," Addiction, 105,3, pp. 383

393. Retrieved October 25, 2013 from http://onlinelibrary.wiley.com/doi/10.1111/j.1360-0443.2009.02721.x/abstract

Purshouse, R., Meier, P.S., Brennan, A., Taylor, K.B. And Rafia, R.,2010 "Estimated Effect of Alcohol Pricing Policies on Health and Health Economic Outcomes in England: an Epidemiological Model," Lancet 375:1355-64. Retrieved October 25, 2013 from http://www.alcsmart.ipin.edu.pl

Rabinovich, L., P. Brutscher, H. de Vries, J. Tiessen, J. Clift and A. Reding, 2009 "The

Affordability of Alcoholic Beverages in the European Union: Understanding the Link

between Alcohol Affordability, Consumption and Harms." Retrieved October 25, 2013 from http://ec.europa.eu/health/ph_determinants/life_style/alcohol/documents/alcohol_rand_en.pdf

Record, C. And Day, C., 2009 "Britain's Alcohol Market: How Minimum Alcohol Prices Could

Stop Moderate Drinkers Subsidising Those Drinking at Hazardous and Harmful

Levels," Clinical Medicine 9:5, pp.421-5. Retrieved October 25, 2013 from http://www.unboundmedicine.com/medline/citation/19886099/Britain%27s_alcohol_market:_how_minimum_alcohol_prices_could_stop_moderate_drinkers_subsidising_those_drinking_at_hazardous_and_harmful_levels_

Wagenaar, A.C., M.J. Salois and K.A. Komro, 2009 "Effects of Beverage Alcohol Price and Tax Levels on Drinking: A Meta-Analysis of 1003 Estimates from 112 Studies," Addiction,

104,2, pp. 179 -- 190. Retrieved October 25, 2013 from http://centaur.reading.ac.uk/17960/1/MS-08-0405_Alcohol_price_meta-analysis_REVISED_9-23-08.pdf [END OF PREVIEW]

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