What happens when we increase the price of the cheapest alcohol?
Feb 19, 2021
A team of researchers have recently published an article looking at the effectiveness of the Northern Territory Government’s increase of the minimum unit price (MUP) of cheap wine products (eg cask wine). The article titled “The impact of a minimum unit price on wholesale alcohol supply trends in the Northern Territory, Australia” describes the outcomes 12 months after the price rise was introduced. The researchers found the strategy was very effective. Per capita consumption of cask wine decreased by a little over 50% across the whole of the Northern Territory, with a 48.8% reduction in Darwin / Palmerston compared to the year prior to the price rise. The researchers did not observe a rise in other alcohol sales (eg beer) which means that the price rise led to an overall decrease in alcohol consumption.