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The reason beer is going up, but spirits don't in price and taxes.

The effects of price on alcohol consumption and alcohol-related problems | Alcohol Research & Health | Find Articles at BNET.com

the price elasticities of demand for beer, wine, and distilled spirits are -0.3, -1.0, and -1.5, respectively (Leung and Phelps 1993). (3) These estimates suggest that beer consumption is relatively insensitive to price changes, whereas demand for wine and distilled spirits is very responsive to price.

So you can put the price of beer up, wear a halo for "doing something about binge drinking" safe in the knowledge that sales won't suffer. But don't touch the price of spirits!

Comments

And another reason the price of spirits never rises, in fact has had no tax increases at all since New Labour got into power (and we know they love tax increases!)? Gordon Brown's home country makes a lot of whisky. Tax English beer fine, but don't touch that Scotch. Yet another example of pro-Scottish government bias.

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