Sunday, March 15, 2009
Alcohol Price May Double: UK
This is not a good proposition for the South African wine industry. The UK absorbs app 27% of all South African wines exported and is therefore the biggest importer in volume (SAWIS)
If implemented, the UK retailer/importer will give the South African producer a choice: either, you absorb the price increase (which they can't) or we (retailer) increase the wine price in which case the volume goes down.
The writing is on the wall. A route to follow for a South African farmer is to start diversifying into food products as soon as possible and not to depend on wine only.
And then they should pray that Jim Rogers is right: that in 5 years time, bankers will go to work on a bicycle and farmers in a Maserati.
Alcohol Price May Double
Government's top doctor recommends price hike for alcohol
The Government's most senior doctor has drawn up plans for a minimum price for alcohol, which would double the costs of some drinks.
Telegraph; by Patrick Hennessy and Laura Donnelly
Last Updated: 10:23AM GMT 15 Mar 2009
Chief medical officer Professor Sir Liam Donaldson will tomorrow recommend state limits on the price of alcoholic drinks, meaning that none could be sold for less than 50 pence per unit of alcohol.
The proposal, from his annual report on the state of the nation's health, will say the stark measure is necessary to tackle the scourge of binge drinking among Britain's youth, and rising levels of alcoholism among older people.
The change would mean that most bottles of wine could not be sold for less than £4.50, while the prices of many "own brand" beers would double.
A bottle of Hardy's Merlot, currently sold in some supermarkets for £4.29 would rise to £4.90, while a four pack of Boddington's Beer would rise from £2.99 to £3.40.
Posted by Troy Ounce at 2:23:00 PM