By Amy Looker
The Liquor Stores Association of New South Wales (LSA NSW) has hit out at new guidelines proposed by the Office of Liquor, Gaming and Racing (OLGR) that would put a stop to discounting by bottleshops that the regulator deems to be "high risk".
The OLGR has released a draft proposal for the guidelines, which would tighten liquor promotions such as shopper docket offers, including two-for-one wine deals and beer promotions that are more than 50 per cent off the regular retail price.
The LSA NSW said a move to outlaw shopper docket price promotions will also mean other forms of discounting will be banned, resulting in a hit to New South Wales shoppers.
“In an extraordinary move, the NSW Government regulator is proposing to set a fixed price for alcohol, potentially opening up significant cross-border trade issues and disadvantaging NSW residents to all other Australians because they have formed a preliminary view that a bottle of wine on special is likely to encourage the abuse of liquor,” said LSA NSW chief executive officer, Terry Mott.
“Price promotions have been a common feature of all liquor retailing since time immemorial. Independent, banner groups and chain operated packaged liquor stores, in addition to the large number of hotel bottleshops – use price to market their goods to shift brand purchase and attract customers, not to increase consumption.
”When per capita alcohol consumption is falling, rates of risky drinking are in decline and abstinence is rising among young people, it is clear the regulator is out-of-touch with the drinking behaviour of NSW.”
Why would fixed price liquor harm any retailer but the big chains?
A way to stop the big chains destruction of competition and the demise of iconic, quality Australian brands, of over a century, in all industries ; particularly in the alcohol industry. Is to let them cut their prices, to whatever. Then have legislation made. That when they want to return to regular pricing. They cannot increase the price by more than 5% of their lowest advertised price for that product. Thus protecting our industries and jobs and restoring true competition. With more choice of retailers in the market place.
What a lot of rubbish pedalled by this article.
The issue isn’t legitimate price competition on alcohol.
It is about absurd cross-promotions – such as credits or unsustainable deep discounts (2-for-1 deals/50% off) based upon buying goods from a different sector – eg a tank of petrol. Apart from the ethics of cross-subsidising alcohol from other products, this practice is also anti-competitive. It only plays into the hands of the big operators. The big guys can either afford to own retail outlets across multiple sectors, or stitch up deals with other major suppliers.