Government shelves mandatory code

Fine wine merchants across the UK will be pleased to hear that the government is indefinately delaying plans to introduce a mandatory code on the sale of alcohol in an attempt to remove "anti-business" measures.

As reported by the drinks business in August , fine wine retailers would suffer a significant competitive disadvantage under the government’s suggested scheme, in particular a ban on discounts on volumes greater than 12 bottles of wine.

The Home Office consultation on a new Code of Practice for alcohol retailers included a draft proposal prohibiting discounts on volume sales of beers, wines and spirits.

The suggested threshold for wine was nine litres, or a 12-bottle case (75cl), although it was thought this might be lowered to six bottles.

Lord Mandleson has ordered the U-turn on the proposed code as part of a wider aim to attempt to improve conditions for struggling businesses.

Jeremy Beadles, chief executive of The Wine and Spirit Trade Association (WSTA) had written to the Home Office to point out the unfortunate consequences of the mandatory code for wine merchants.

In particular, he drew attention to the fact that the measures, designed to reduce alcohol-related harms, would adversely affect fine wine and specialist merchants, as well as online and mail order companies, which are obviously not the cause of the problem.

Responding to the news, Mark Hastings, director of communications at the British Beer and Pub Association, said: “We are very pleased the government has listened and responded to our compelling arguments on this unnecessary and disproportionate legislation – and recognised the damage that it would do to Britain’s pubs."

Patrick Schmitt and Alan Lodge, 17.09.2009