How Prepared Are Your Retailers for the Introduction of Minimum Unit Pricing?

Changes to legislation have been a prominent topic over recent years.  TPD2 and the Sugar Tax are directly and indirectly affecting certain categories whilst Pension Auto-enrolment & the National Living Wage increases are putting a greater strain on independent retailers’ bottom line.  Most suppliers and retailers have addressed the impact of these legislative changes and have embedded them into their strategies, but how prepared are they for the changes that are upcoming?

Minimum Unit Pricing (MUP), coming into effect on 1st May in Scotland, will dictate that a base price of 50p per unit is charged across all alcohol SKUs. Many believe that white ciders and value spirits will be the most affected categories.  Whilst the legislation is currently only set to be implemented in Scotland, there is already talk of similar regulation being introduced across the rest of the UK so it is imperative that BWS suppliers begin to understand the threats and opportunities MUP may present for their portfolio or brands and products.

So, how prepared are retailers in Scotland for this impending legislation?

We spoke directly to a number of Scottish independent and symbol retailers to find out how aware they are of the legislation and what impact they believe it will have on their decision-making. The insights gathered shed light on how best BWS suppliers can support retailers during this challenging time – and it’s not just about advising on post-MUP pricing & ranges.

Over 24% of the Scottish retailers we spoke to still do not feel prepared for MUP and there is concern from them around several areas including visit frequency, redundant categories and a drop in spend.

BWS suppliers need to understand the root of these retailer concerns in order to build a robust strategy to overcome the challenges MUP brings. With 70% of retailer’s considering range changes as a result of MUP it is important that suppliers understand the concerns and challenges that they face in order to avoid their products being taken out of ranges.

Implementing the type of support and upskilling that retailers have told us they require will put you in good stead and provide a platform for turning MUP from a potential threat into an opportunity to capitalise and drive further sales for you and your brands.

Contact our New Business Team now to find out more about this research and get access to the full report.


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