How inexpensive alcohol really is

  Bazzaman 11:34 29 Oct 15
Locked

Nothing out of the ordinary, I know, but Morrisons selling various big name brands of spirits at £15 per litre at the moment.

If one considers the Bell's Whisky (40% ABV), 20% is VAT (to my knowledge VAT is calculated on the duty as well as the product itself). So excl. VAT is £12.50. The duty is £11.06 (the duty rate is £27.66 per 1% ABV per 100 litres - 27.66 * 40 /100 = 11.064).

So the price at the till of the underlying product is £1.44 per litre (ostensibly to cover production, marketing, shipping, storage, store costs and so on). Quite staggering really.

Click here for full details of duty rates.

  spuds 13:47 29 Oct 15

I recall the days, when it was cheaper to buy genuine well known named branded Scotch whiskey and similar in South East Asia, than in Scotland or the rest of the UK. Now those were the days.

  bumpkin 16:04 29 Oct 15

How inexpensive alcohol really is

I take that to mean how expensive our taxation really is.

  Bazzaman 18:30 29 Oct 15

Not really - the focus was on the fact that @ £15 per litre, the actual product (i.e Bells Whisky in this case) excluding tax and duty comes to a grand total of £1.44 per litre (not much more than a pint of milk and probably cheaper than certain mineral waters).

  bumpkin 19:14 29 Oct 15

So £13.56 tax on an item costing £1.44 is irrelevant. Why not apply it to lemonade on that basis, no one is forcing you drink it.

  Forum Editor 19:53 29 Oct 15

Retailers sometimes run lines at slightly above cost, or even at cost, simply to attract customers into the store. They know that once people are inside they will more than likely make some impulse purchases.

It's that old thing called a loss leader. Aldi is particularly good at this.

  Aitchbee 20:34 29 Oct 15

... and it's about 5p for a can of beer [ if my calculations are correct].

  BT 08:11 30 Oct 15

Retailers sometimes run lines at slightly above cost, or even at cost, simply to attract customers into the store.

The current £15/litre on a number of spirit brands is almost certainly marketing by Diageo as its in all the major supermarkets and appears regularly at holiday/celebration times of the year. Its a good opportunity to stock up if your that way inclined. After all saving around £7 on a litre bottle is worth it.

  carver 17:11 30 Oct 15

Wine is another item that is taxed to the hilt, for a £5 bottle of wine the cost for the wine is 16p, about 50p labour and shipping costs rest is supermarket profit and tax

  Aitchbee 17:21 30 Oct 15

... so anybody who cuts down on their alcohol intake bigtime [or even becomes teetotal] is really just awarding themselves a recurring/rolling tax rebate ... a win win result!

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