The impact of a minimum unit price on wholesale alcohol supply trends in the Northern Territory, Australia

Abstract

Objective: The Northern Territory (NT) Government introduced a minimum unit price (MUP) of $1.30 per standard drink (10g pure alcohol) explicitly aimed at reducing the consumption of cheap wine products from October 2018. We aimed to assess the impact of the NT MUP on estimates of beverage‐specific population‐adjusted alcohol consumption using wholesale alcohol supply data. Methods: Interrupted time series analyses were conducted to examine MUP effects on trends in estimated per capita alcohol consumption (PCAC) for cask wine, total wine and total alcohol, across the NT and in the Darwin/Palmerston region. Results: Significant step decreases were found for cask wine and total wine PCAC in Darwin/Palmerston and across the Northern Territory. PCAC of cask wine decreased by 50.6% in the NT, and by 48.8% in Darwin/Palmerston compared to the prior year. PCAC for other beverages (e.g. beer) were largely unaffected by MUP. Overall, PCAC across the Territory declined, but not in Darwin/Palmerston. Conclusion: With minimal implementation costs, the Northern Territory Government's MUP policy successfully targeted and reduced cask wine and total wine consumption. Cask wine, in particular, almost halved in Darwin/Palmerston where the impact of the MUP was able to be determined and considering other interventions. Implications for public health: Implementation of a minimum unit price for retail alcohol sales is a cost‐effective way to reduce the consumption of high alcohol content and high‐risk products, such as cheap cask wine.

A historical overview of legislated alcohol policy in the Northern Territory of Australia: 1979–2021

“…Regulating physical availability; 4. Drink driving countermeasures, Police Auxiliary Liquor Inspectors (PALIs) Aug 2018 – present Originally: Liquor Amendment (Point of Sale Intervention) Act 2018 (NT) Present: Liquor Act 2019 (NT) Section 249 Katherine, Tennant Creek, Alice Springs Discussed in: Clifford et al [ 10 ]; Coomber et al [ 85 ]; Foundation for Alcohol Research and Education & People’s Alcohol Action Coalition [ 82 ]; Secombe et al [ 83 ]; Taylor et al [ 86 ]; Wright, McAnulty & Secombe [ 84 ]; No 2. Regulating physical availability Minimum Unit Price 1 Oct 2018 – present Originally: Liquor Amendment (Minimum Pricing) Act 2018 (NT) Present: Liquor Act 2019 (NT) Section 121 NT wide Evaluation: Coomber et al [ 85 ] + related academic publication: Taylor et al [ 86 ] Report: Foundation for Alcohol Research and Education & People’s Alcohol Action Coalition [ 82 ] Academic publications: Secombe et al [ 87 ] (response: Clifford, Griffiths & Smith [ 10 ] Discussed in: Chikritzhs & Weeramanthri [ 88 ]; Secombe et al [ 83 ]; Smith et al [ 12 ]; Wright, McAnulty & Secombe [ 84 ] Yes 1.…”

“…The MUP means that alcohol must be sold at a price above AU$1.30 per standard drink (10 g of ethanol). One year post implementation, Taylor and colleagues found immediate substantial declines in estimated cask wine consumption, and significant step reductions in total wine consumption [ 86 ]. There were also decreases in some alcohol-related harms, with variations between regions [ 85 ].…”

Alcohol and the Risk of Injury

“…Price-based interventions have historically been delivered via governments raising alcohol taxes. However, there is growing evidence that raising the minimum price at which alcohol can be sold at retail (i.e., minimum unit pricing, MUP) is an effective strategy for reducing overall consumption, IV and drink-driving [ 109 , 110 , 111 , 112 ].…”

Minimum unit price deters heaviest alcohol purchasers

“…The MUP is an effective option to reduce off-trade alcohol purchasing, particularly for the groups that purchase the most. The effectiveness of MUP has been seen in several countries in addition to Scotland and Wales, including several provinces in Canada, 8 the Northern Territory in Australia, 9 and some countries of the former Soviet Union. 10 Compared with increasing alcohol taxes, the MUP is likely to be welcomed by on-trade venues, because the MUP would mainly affect prices of off-trade alcoholic beverages.…”