What affect has the abolition of duty free had on the UK alcohol market?

One in ten ABC1s socio-economic groups are buying alcohol abroad to bring home - is income a key factor in buying alcohol abroad?

Is there future growth in the cross channel shopping market?

This report studies the effects of cross-Channel shopping on the UK alcoholic drinks market. Despite the fact that duty-free trading was abolished within the EU in 1999, alcoholic beverages are still generally cheaper, even duty-paid, in mainland Europe than in the UK, with the exception of Scandinavian nations. Despite widespread protest from various (alcoholic) drinks trade associations, licensees and brewers, the UK Government has failed to reduce excise duty. Nevertheless, the loss of duty-free trading has cost the UK around £620 million in lost sales and some 3,000 lost jobs, according to the Travel Retail Association.

What affect has the abolition of duty free had on the UK alcohol market?

One in ten ABC1s socio-economic groups are buying alcohol abroad to bring home - is income a key factor in buying alcohol abroad?

Is there future growth in the cross channel shopping market?

This report studies the effects of cross-Channel shopping on the UK alcoholic drinks market. Despite the fact that duty-free trading was abolished within the EU in 1999, alcoholic beverages are still generally cheaper, even duty-paid, in mainland Europe than in the UK, with the exception of Scandinavian nations. Despite widespread protest from various (alcoholic) drinks trade associations, licensees and brewers, the UK Government has failed to reduce excise duty. Nevertheless, the loss of duty-free trading has cost the UK around £620 million in lost sales and some 3,000 lost jobs, according to the Travel Retail Association.

The ferry companies, together with Eurotunnel, in a bid to compensate for the loss of duty-free sales, introduced higher fares and passenger traffic fell as a result. However, freight traffic has grown some 9% over the same period on the Dover-Calais route, some of which has been driven by grey market trading and smuggling. Nevertheless, the opportunity to buy duty-paid alcohol in mainland Europe, more cheaply than in the UK, still exists.

Mintel last examined this subject in Market Intelligence, June 1999.

Other reports of relevance include:

- UK Drink Market, Special Report 2000

- Drinking Trends, Market Intelligence, November 2000.