The MUP legislation will make the most difference to those retailers who operate in the Scottish off trade. We believe the legislation will create the following opportunities:
Ranging – As stronger drinks that contain more units of alcohol will have a higher minimum price than drinks that contain less alcohol. Drinks that will be affected include strong white cider, own brand vodka and gin, and super strength lager. Consequently by stocking more products not effected by legislation MUP will have less effect.
Pack Size – MUP means that economies of scale associated with larger pack formats can’t be passed on. As a result shoppers will be less inclined to by larger pack formats. Retailers should focus on smaller pack formats priced around £5, £10 and £15.
Growth of Chilled – As consumers look at smaller pack sizes, they will naturally pick up pre-chilled packs where possible. This gives smaller retailers an advantage over larger store formats.
For more information on MUP why not download the Scottish Grocer’s Federation guidance report:
To see what impact MUP will have on alcohol pricing in your store, click the link below:
CEO, C&C GROUP
CATEGORY & INSIGHTS MANAGER, C&C GROUP
LOUISE FEENIE, ALCOHOL POLICY TEAM LEADER, SCOTTISH GOVERNMENT
DR JOHN LEE
HEAD OF POLICY & PUBLIC AFFAIRS, SGF