ActionPoint - “E raka te maui e raka te katau
    “E raka te maui e raka te katau" "A community can use all the skills of its people”
  • Our Drinking Culture
    • Our Drinking Culture
    • Drinking in New Zealand
    • Alcohol harm in New Zealand
    • Our Drinking Environment
    • Cost of alcohol to society
    • The alcohol industry in New Zealand
  • Mobilising Others
    • Mobilising Others
    • Find organisations to help you take action
    • Find other community members who may join with you
    • Develop your skills
    • Engage with Policymakers
    • Other Action Ideas
  • Campaigns
    • Campaigns
    • FASD Awareness Month
    • Protect Kids
    • Unite against COVID-19 – Helping whānau & communities prevent alcohol issues
    • Uncap Our Potential
  • Facebook Group

Pages tagged "Price & Promotion"


Take Action

Posted in 3. Irresponsible promotion - alcohol areas in supermarkets

Consult local regulatory agencies in your area 

If you feel your supermarket is not limiting exposure and promotion of alcohol to a single area(s), consult your local regulatory agencies. As a starting point, contact your local PUBLIC HEALTH UNIT.

You may also contact the licensing team of the local council in your area as they deal with Local Alcohol Policies or Licence Applications. Here is a list of LOCAL COUNCIL whereby you may search for contact details of the respective alcohol licensing team in your area. 

 


Get Prepared

Posted in 3. Irresponsible promotion - alcohol areas in supermarkets

The Sale and Supply of Alcohol Act 2012 introduced restrictions on where supermarket and groceries stores can display and promote alcohol. This is now confined to a “single area” within the store. Promotions must not be seen or heard outside of this area or from outside of the store.

Click here to read the legislation relating to single areas for supermarkets.


Consult your local regulatory agencies for the most updated information on alcohol areas in supermarkets. A good starting point is contacting your local PUBLIC HEALTH UNIT .

You may also contact the licensing team of your local council as they deal with Local Alcohol Policies or Licence Applications. Here is a list of LOCAL COUNCIL whereby you may search for contact details of the respective alcohol licensing team in your area. 

 


Case for Change

Posted in 3. Irresponsible promotion - alcohol areas in supermarkets

In 1989, wine and mead became available for sale from grocery stores and supermarkets. This was followed in 1999 with beer. The sale of spirits is not permitted.

The introduction of wine sales into New Zealand supermarkets increased the affordability and consumption of wine markedly. New Zealanders are now drinking twice as much wine as they used to.

There are two major supermarket chains in New Zealand: Progressive Enterprises and Foodstuffs.

Alcohol is the biggest selling caterory in the supermarket. Many New Zealanders buy their alcohol from supermarkets.

On average, the same alcohol product is sold more cheaply from supermarkets than bottle stores.

The number of supermarkets and grocery stores in New Zealand communities has been linked with a range of alcohol-related harms: antisocial behaviour, dishonesty offences, property abuses, property damage, sexual offences and violent offences.

The placement of alcohol in everyday settings, next to commonly purchased products, may normalise alcohol use in our society. Especially among children. New Zealand children are regularly exposed to alcohol in supermarkets.

Tobacco can't be displayed in supermarkets, but alcohol can. Yet alcohol is the most harmful drug in our society.

Availability, and exposure to, alcohol in supermarkets

Generally speaking, the more that alcohol is available in a community, the higher the levels of alcohol-related harm.

In 1989, wine and mead became available for sale from grocery stores and supermarkets.

In 1999, beer  available for sale through these types of outlets. The sale of spirits is not permitted.

Research has shown that the introduction of wine sales into New Zealand supermarkets increased the affordability and consumption of wine markedly.

Wine consumption increased by 11% -16% following its sale in supermarkets. This increase takes into account the lower price of alcohol in these settings. 

These increases happened immediately - within the first three months of wine being sold in supermarkets! Wine consumption has continued to increase (New Zealanders are drinking twice as much as they used to).

Alcohol sales are banned in supermarkets in Australia (although the supermarket chains usually have a separate alcohol shop next door). Many states in the United States also ban supermarket sales.

Today, around 250,000 residents of West Auckland cannot buy alcohol from their supermarkets as off-licence supply is controlled by the Portage and Waitakere Licensing Trusts. No supermarkets in the Invercargill Licensing Trust can sell alcohol.

During the New Zealand Law Commission's consultation on alcohol laws,  a strong sentiment was found in favour of removing alcohol altogether from supermarkets and returning to the pre-1989 era when it was only sold by specialist liquor outlets.


Supermarket's market share of beer and wine sales

There are two major supermarket chains in New Zealand: Progressive Enterprises (184 Countdown stores, 62 Fresh Choice and Supervalue stores) and Foodstuffs (140 New World stores, >50 PaknSave stores, 240 Four Square stores).

In 2000, the supermarket share of beer sales was 12% and for wine it was 43%. In 2008, they sold around 30% of all beer and just under 60% of all wine. In 2008 it was estimated that beer and wine sales in supermarkets were worth $1 billion. (cited in p.59, Law Commission Report (114))

The Law Commission (p.43) also cited an in-house supermarket newsletter that wine and beer together bring in more revenue than any other category in the supermarket.

In Auckland, approximately 75% of all alcohol sold is from off-licences; 53% of this is from bottle stores and 47% from supermarkets.

In 2013, research found that the most common place for Auckland drinkers to purchase their alcohol in the last month were supermarkets.

It is well-known that alcohol sold from supermarkets is, on average, significantly cheaper than the same alcohol purchased from bottle stores. The Ministry of Justice has stated that the price is so cheap that many smaller bottle stores buy their alcohol products from supermarkets.


Alcohol-related harm and supermarkets

The density of supermarkets and grocery stores in New Zealand has been shown to be linked with a range of alcohol-related harms across the North Island of New Zealand. These include: antisocial behaviour, dishonesty offences, property abuses, property damage, sexual offences and violent offences.


Exposure to alcohol in supermarkets

PROMOTIONS AND DISCOUNTS

Supermarkets commonly use promotions to market their alcohol products for sale. They use a number of methods to stimulate shoppers to buy alcohol:

  • product displays
  • contests
  • price discounts
  • free tastings.

To read more about the impact of promotions, click here.

NORMALISATION OF ALCOHOL TO CHILDREN

On-site exposure to alcohol marketing at settings such as supermarkets is suggested to lead children to believe that alcohol is no different to any other everyday consumer good sold at the supermarket. This is especially given that supermarkets often us the same promotional strategies for alcohol as non-alcoholic products.

Many New Zealand children frequent supermarkets on a regular basis. Although they may not frequently attempt to purchase alcohol from these places, they are heavily exposed to its marketing. 

In a study of New Zealand children's visits to supermarkets, it was found that in 87% of these visits they were exposed to alcohol marketing.

International studies show:

  • that when children are exposed to on-site marketing at alcohol retailers they are more likely to start drinking earlier.
  • that when children aged 12–14 years are followed over time, non-drinkers exposed to sales promotions at alcohol retailers were 42% more likely to use alcohol when they were aged 14–15 years.
  • that children exposed to onsite advertising at alcohol retailers at least once per week were 50% more likely to have consumed alcohol than children less frequently exposed.
  • that children's exposure to alcohol marketing in alcohol retailers predicts their ability to list beer brands, match brands with slogans and name products in masked beer advertisements. 

END OF AISLE DISPLAYS

A high quality study in the United Kingdom found that end of aisle displays increased alcoholic purchases considerably. Sales increased as much as 23-46% - this would have a significant impact on alcohol consumption.


Tobacco is no longer displayed in supermarkets, so why is alcohol?

In July 2012, New Zealand required the removal of tobacco displays from all tobacco outlets, including supermarkets. Prior to this law change, tobacco was not to be displayed in close proximity to products that are marketed primarily for children, including all confectionery.

The reasons for these restrictions were due to the growing body of evidence, both nationally and internationally, of the effects of tobacco display advertising on adolescent smoking.

Following the law change to remove tobacco displays, positive reductions in the initiation of smoking, experimental and regular smoking, and attempted purchase of cigarettes were found.

This assists to provide a strong case for alcohol to be less visible in everyday settings.


Get Prepared

Posted in 2. Irresponsible promotion - including discounting

New Zealand laws on alcohol promotions (including discounting)

New Zealand law restricts the promotion and/or advertising of alcohol that:

  • encourages excessive consumption
  • advertises or promotes discounts of 25% or more

This means that it is only against the law to advertise and promote a discount - it is not against the law to have a discount of 25% or more.

This law applies to anyone undertaking a business including on-licences, off-licences, club licences and special licences and to any promotions run by a person or company which is not licensed.

Section 237 of the Sale and Supply of Alcohol Act is called Irresponsible promotion of alcohol. This section prohibits:

  • Any person that encourages people, or is likely to encourage people, to consume alcohol to an excessive extent, whether on licensed premises or at any other place
  • Any person to promote or advertise a discounted alcohol product that leads people to believe the price is 25% or more below the normal price of the product (other than in a licensed premises or in an off-licence catalogue)
  • On-licensed premises to promote or advertise discounted alcohol that leads people to believe the price is 25% or more below the normal price of the product AND can be seen or heard from outside the premises
  • Promotions or advertisements of alcohol that is free of charge (does not include free sampling)
  • Offers goods and services or the opportunity to win a prize on the condition that alcohol is bought
  • Promotions which are in a manner aimed at, or that has, or is likely to have, special appeal to minors

Although off-licence catalogues are excluded from the section, other media is included – such as billboards, window displays, etc.

Examples of acceptable and unacceptable promotions at on-licences and off-licences have been developed by the Health Promotion Agency.

ON-LICENCE ALCOHOL PROMOTIONS         OFF-LICENCE ALCOHOL PROMOTIONS

The Sale and Supply of Alcohol Act 2012 also includes restrictions on where supermarket and groceries stores can display and promote alcohol. This is now confined to a “single area” within the store. Promotions must not be seen or heard outside of this area or from outside of the store. For more information on single areas in supermarkets, please click here.

 


Background

Posted in 2. Irresponsible promotion - including discounting

Promotion of discounted alcohol beverages 

Of all supermarket products, alcohol is the most sensitive to price promotion

Discounting is a common strategy used to encourage alcohol sales, particularly within off-licences but also in bars and restaurants through the use of ‘happy hours’ etc.

In New Zealand, the majority (55%) of drinkers purchased their alcohol when sold on promotion (cited in the 2014 Ministry of Justice Report).

Supermarkets are more reliant on promotions to drive sales when compared to specialist liquor stores (e.g. bottle stores). In supermarkets, almost 6 in every 10 dollars spent on all items (including alcohol and groceries) in 2018 were sold on promotion, compared to 2 in every 10 dollars spent in liquor stores. In the year ending March 31 2018, 71% and 70% of dollars spent in supermarkets on beer and wine sales respectively, were for products on promotion. This compares to 23% and 31% in liquor stores.

Off all items in supermarkets, sales of alcohol have been shown to be the most sensitive to price promotion, particularly  cask wine and beer followed by bottled wine. Simply put, shoppers are very responsive to discounted alcohol.  Compared to alcohol sold in supermarkets, individual grocery items (e.g. coffee, toilet paper, confectionery) are less sensitive to promotion in price. 


Price-based promotions are the key types of promotion activities for alcohol products

A study of 24 off-licences in Perth and Sydney found that there were 427 unique forms of promotion used across the alcohol outlets. The study found:

  • Price-based promotions (including but not limited to discounts) represented 61% of all the types of promotion activities;
  • Supermarkets had a higher number of price promotions compared to liquor chain stores;
  • The most common form of price promotion was offering multiple items for a discounted price; and
  • Wine had the highest number of price promotions, followed by spirits, beer and RTDs.

Effects of price promotions of alcohol in point-of-sale

A US study found that alcohol products in larger-volume packages (e.g., 12-pack) were more likely to be promoted than smaller packages (e.g., 6-pack). This finding has significant implications for reducing the harm from heavy episodic drinking.

An Australian study found that drinkers who participated in point-of-sale promotions report purchasing a greater quantity of alcohol than those who did not participate. This is particularly evident for beer purchases (average of 26.8 standard drinks vs 16.4), followed by RTDs (11.5 standard drinks vs 8.9) and wine (16.1 standard drinks vs. 13.8). Young drinkers were found to use descriptors such as ‘Price’ and ‘Cheap’ as the main reason that they purchased wine.

Another study also found that young people are very aware of in-store sale promotions in order to maximise their alcohol purchases within their budgets. Cheap alcohol may also facilitate social get-togethers, that would not have occurred otherwise.


NZ laws on the discounting of alcohol

New Zealand law stipulates that any person commits an offence if they advertise discounts of 25% or more, where the advertisement can be seen or heard from outside of a licensed premise. Discounts of 25% of more are permitted inside a licensed premise or in an off-licence price catalogue. It is important to note that it is only the advertising, not the offer of the discount, that is prohibited. In other words, heavy discounting activities (e.g., 60% discounts) inside supermarkets (and other premises) continue to be seen in New Zealand, especially during the Christmas and New Year holiday period.

Note that it is illegal to offer free alcohol. Read more in the next section - GET PREPARED 


Progress and impact of prohibiting different types of price-promotion


Take Action

Posted in 1. The price of alcohol

Take action on the low price of alcohol

  • Share any information on prices and promotions you have gathered with others through our Facebook Group. It could be useful in planning for advocacy efforts at the national level - please check out the section on advocacy for more information. 
  • Take opportunities to raise awareness of the effectiveness of pricing strategies with local decision makers and influencers. For tips and assistance, please check out the section on advocacy for more information. 
  • Raise the issue in the media through a letter to the editor or offering an opinion piece – for more tips and assistance, please check out the section on engaging with mainstream media or connect with community champions. 
  • Include price issues on any submissions on draft legislation (i.e. Bills) which relate to alcohol. We will develop a submission template on price measures when opportunities arise. 

Submission template  - price measures on alcohol  

  • To assist you, read more information on ALCOHOL EXCISES TAXES      MINIMUM UNIT PRICING 
  • Join or support other advocacy efforts towards the implementation of more effective price controls, please check out the section on Mobilising Others for more ideas. 

 


Get Prepared

Posted in 1. The price of alcohol

The price of alcohol 

  • Cheap and discounted alcohol increases the demand for alcohol and encourages heavier drinking.
  • The introduction of alcohol (beer, wine and mead) into supermarkets (wine in 1989 and beer in 1999) had a considerable impact on lowering the price of alcohol. The price of any particular beer or wine is generally found to be cheaper in supermarkets than bottle stores.
  • The introduction of ready-to-drinks (RTDs or alcopops) also had a considerable impact on drinking, particularly on young people. They are relatively cheap and attractive to young people.
  • Increasing the retail price of alcohol is one of the most effective strategies to reduce accessibility and alcohol-related harm. It can be achieved in a number of ways including; increasing excise tax, introducing Minimum Unit Pricing, restricting the promotion of discounted alcohol.

Case for Change

Posted in 1. The price of alcohol

The low price of alcohol is a key driver of our drinking culture. Cheap alcohol fuels heavy drinking.

In 2017, alcohol was found to be more affordable than ever before. Wine has particularly become more affordable. This means that it now takes us less time to earn enough money to buy a standard drink.

In New Zealand, off-licences are now selling approximately 75% of all alcohol. Supermarkets are big players in the retail market.

High liquor outlet density in a community may lead to competition, which drives prices down.

Increasing the price of alcohol is one of the strongest tools in our kete / basket to reduce harm. A large body of high-quality research suggests that a 10% increase in price reduces overall alcohol consumption by 5%. In fact, it is the most important strategy to reduce inequities in alcohol harm.

The price of alcohol 

The price of alcohol is closely related to its consumption. On average, people will drink less when alcohol is more expensive. Increasing the price of alcohol is one of the most effective strategies to reduce consumption and harm. A large body of high-quality research suggests that a 10% increase in price reduces overall alcohol consumption by 5%.

A 5% reduction in consumption in New Zealand would mean:

  • 45 million FEWER bottles of beer (330ml)
  • 7 million FEWER bottles of wine (750ml)
  • <1 million FEWER bottles of spirits (1L)
  • 14 million FEWER bottles of RTDs (250ml)

The retail environment has a huge impact on the price of alcohol. In New Zealand, supermarkets are major suppliers of beer and wine. In 2008, the two supermarket chains sold around 60% of all wine and just over 30% of all beer in New Zealand. It has been found that beer and wine sold in supermarkets is cheaper than the same products bought at bottle stores. Many bottle stores buy their alcohol for sale from supermarkets, given they cannot obtain the alcohol at the same price from their own suppliers.

In New Zealand, alcohol products sold at off-licences have become more affordable over time. This means that it now takes us less time to earn enough money to buy an alcohol product.

When there are many outlets in a community, competition can force retailers to discount the price of their alcohol in their stores so that they can ‘win’ the purchase.

Price differences between different types of alcohol outlets may also lead to more alcohol-related harms in a community. For example, spirits purchased from an on-licence can cost 9 times more than those purchased from an off-licence. This is likely why off-licences in New Zealand are now selling approximately 75% of all alcohol sold in New Zealand. It also means that more people drink in their homes or other’s homes, which can often be risky settings. New Zealanders commonly drink at home or other private settings prior to entering pubs and bars in town. In 2010 in New Zealand, 73% of the total volume of absolute alcohol was consumed in private homes (own home, other's homes).

There are several ways that the price of alcohol can be increased:

  1. Increasing excise taxes on alcohol products
  2. Setting a minimum unit price at which alcohol can be sold 
  3. Restricting or banning heavy discounts on alcohol.

We need a combination of all of these approaches in order to reduce alcohol consumption and harm.


For a detailed report on alcohol pricing policies in Aotearoa, click here ROADMAP FOR ALCOHOL PRICING POLICIES

Click this button to read more on ALCOHOL EXCISE TAXES MINIMUM UNIT PRICING


Take Action

Posted in 4. Supermarkets

Consult local regulatory agencies in your area 

If you feel your supermarket is not limiting exposure and promotion of alcohol to a single area(s), consult your local regulatory agencies. As a starting point, contact your local PUBLIC HEALTH UNIT.

You may also contact the licensing team of the local council in your area as they deal with Local Alcohol Policies or Licence Applications. Here is a list of LOCAL COUNCILS whereby you may search for contact details of the respective alcohol licensing team in your area. 

 


Get Prepared

Posted in 4. Supermarkets

The Sale and Supply of Alcohol Act 2012 introduced restrictions on where supermarket and groceries stores can display and promote alcohol. This is now confined to a “single area” within the store. Promotions must not be seen or heard outside of this area or from outside of the store.

Click here to read the legislation relating to single areas for supermarkets.


Consult your local regulatory agencies for the most updated information on alcohol areas in supermarkets. A good starting point is contacting your local PUBLIC HEALTH UNIT .

You may also contact the licensing team of your local council as they deal with Local Alcohol Policies or Licence Applications. Here is a list of LOCAL COUNCILS whereby you may search for contact details of the respective alcohol licensing team in your area. 

 


  • ← Previous
  • 1
  • 2
  • Next →

CONTACT US

09 520 7036

[email protected]

PO Box 99407, Newmarket
Auckland 1149, New Zealand

ABOUT US

Delivered by Alcohol Healthwatch, an organisation dedicated to reducing and preventing alcohol-related harm in Aotearoa through effective health promotion.

Sign in with Facebook, Twitter or email.
Copyright 2018 ActionPoint | Built by For Purpose | Created with NationBuilder