1 Pricing of alcohol to reduce alcohol- related harms and costs in Canada: A comparison of...
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1 Pricing of alcohol to reduce alcohol-related harms and costs in Canada: A comparison of provincial policies and harm-reduction opportunities Public Health 2014, Toronto May 26-29
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Transcript of 1 Pricing of alcohol to reduce alcohol- related harms and costs in Canada: A comparison of...
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Pricing of alcohol to reduce alcohol-related harms and costs in Canada:
A comparison of provincial policies and harm-reduction opportunities
Public Health 2014, Toronto
May 26-29
Presentation overview
Background
Public health informed pricing practices
Detailed results for the jurisdictions
Overall ratings for the pricing dimension
Opportunities for improvement
Recent changes in pricing policies
Background
Governments maintain control of alcohol sales for two main reasons: Revenue generation Control consumption, harm & costs
Taxation & pricing policies provide one of the most potent means of influencing outcomes in both of these dimensions.
Pricing policies can serve revenue & cost goals simultaneously (i.e., increase revenue & reduce consumption/harm/costs).
Public health-informed pricing practices Research shows that regular/heavy drinkers tend to
gravitate toward less expensive alcohol.
The new generation of pricing policies move beyond “blunt” interventions that increase overall prices by: Implementing minimum (floor) prices Indexing prices (including minimum prices) to inflation Adjusting prices based on alcohol content
These price policies are more targeted because they tend to increase & maintain prices at the lower end of the price spectrum.
Detailed results for pricing
Price Indicator Scores (% of ideal)
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10
20
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90
100
BC AB SK MB ON QC NB NS PEI NL
Province
Ind
ica
tor
sc
ore
(%
of
ide
al
sc
ore
)
a. Minimum pricing
b. Indexation
c. Pricing on alcohol content
Overall results for pricing
Pricing Scores (% of ideal)
0
10
20
30
40
50
60
70
80
90
100
Province
Po
lic
y s
co
re (
%o
f id
ea
l s
co
re)
Top ranking Middle ranking Bottom rankingAverage score
Results (cont.)
Good practices Nearly all jurisdictions have implemented min. prices. A few jurisdictions have begun to adjust their min.
prices for alcohol content (by beverage category). A few jurisdictions index prices to inflation in
regulation or legislation.
Areas for improvement Most provinces sell products below min. prices (e.g. delisted products, FOP sales).
Off-premise prices from BC, AB, ON, QC and PEI, have not kept pace with inflation since 2006.
Recent developments (positive)
BC just conducted a review of its alcohol policies & is talking about implementing minimum prices for bars, clubs & restaurants for the first time.
Manitoba in currently reviewing its alcohol policies & intends to implement minimum prices for more products & adjust them based on alcohol content…may be close to the optimal policy of Minimum Unit Price (MUP).
Recent developments (negative)
News story from QC noting declining sales to young adults & suggesting that prices may be too high & should be lowered!
Some of the policy changes implemented under recent alcohol policy “modernization” agendas serve to increase availability (e.g., allowing alcohol in movie theatres & salons) so may offset some of the benefits of improved pricing policies.
One jurisdiction has opened several discount alcohol outlets that specialize in the sale of delisted products at cut-rate prices.
Contact info
Norman Giesbrecht, Ph. D. (Project P.I.)
Senior Scientist EmeritusSocial & Epidemiological Research Dept.Centre for Addiction and Mental Health 33 Russell St. Toronto, Ontario, Canada M5S 2S1
Phone: (416) 535-8501 ext. 6895
email: [email protected]
Link to the main report: http://www.camh.ca/en/research/news_and_publications/reports_and_books/Documents/Strategies%20to%20Reduce%20Alcohol%20Related%20Harms%20and%20Costs%202013.pdf
