22 April 2009

What The Street Thinks


So today we have had the budget and if you been on GoJ in the last 48 you can tell we have gone all out on this but you'll be happy to know as
tomorrow is the beginning of English Wine week we will go all out on English wines.

So a recap of today the Rt. Hon Darling has increaser duty on alcohol to 2% which works out to be 2p on every pound you spend on a drink and combined with last year’s 17% leap in excise duty, will raise duty on alcohol by around 40% by the time of the London Olympics in 2012. It gos into action at midnight to night.

The WSTA; who represents the whole of the wine and spirit supply chain including producers, importers, wholesalers, bottlers, warehouse keepers, logistics specialists, brand owners, licensed retailers and consultants. Have come out with a statement 'In its first ever joint budget submission the major drinks industry trade associations warned a total of 75,000 jobs would be at risk if the plans to increase taxes further went ahead.' WSTA Chief Executive Jeremy Beadles said: “At a time when the Government is offering other industries a helping hand it is extraordinary that it wishes to hurt the drinks industry with further tax increases.'

In light of this I went out to Reading, a town which I would not call middle England but average Briton. I first went to a pub in the leafy suburb of Caversham called The Crown on the Bridge. There I spoke to the landlord. I ask what affect the 2% increase would do to there prices they told me that they expected that it will in fact end up being something like 5% or 10p extra on the pump after the price has filtered throw down from the brewery's.

With rent and now the increase it is a hard time for pub as Caversham has seen 4 pub close in the last couple of mouths. With this increase which will drive costumers to buy drink for home and bypass the pubs and head straight for the High Street bars after overloading on booze at home or force people to stay at home and have a quite drink from the supermarket, it looks like tough time ahead for the pubs.

I went and look at the other end of the market and went of to the middle of Reading financial business district. I went into a empty wine bar and ask what do they think about the 2% duty increase, they told me that they have gone into administration as they can not get people through the door. This once thriving Bar is now on course to close down.



Walking throw the town I stoped by a couple of pub where people where siting enjoying a drink I ask them if the price increase would stop them coming out they told me they would still come out but drink less and leave there local pub and head to a chain pub like Weatherspoons where the drink would be cheaper. They told me they would prefer to stay at there local but they could not afford it and that they would be forced to stay at home when 'on Saturday the cheaper pubs are taken over by youths bing drinking'.

As as Conservative leader David Cameron later said the extra tax on beer would affect "every drinker in every pub" This increase would make £200 million but is it worth it when we are £160 billion in debt? Is it the 200 million worth the 75000 jobs at risk? Is the 200 million worth community pubs closing? Is 200 million worth people to start bing drinking at home to save money? Well Brown and his Darling think so. I guess they have been in a cosmopolitan London government to long and lost touch.

Cost of drink brake down.

Rant over now back to the wine!

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