Northern Ireland

Boost in trade for northern off-licenses after southern drink price hike

A price hike in alcohol south of the border has resulted in a boost for off-licenses north of the border
A price hike in alcohol south of the border has resulted in a boost for off-licenses north of the border A price hike in alcohol south of the border has resulted in a boost for off-licenses north of the border

OFF-licence owners close to the border have said they hope to advantage after an alcohol price hike in the south.

The introduction of minimum pricing came into force across the south last week.

Under the new rules the cost of drink has risen sharply.

A standard bottle of wine cannot now be sold for less than €7.40 and a can of beer for less than €1.70.

Spirits like gin or vodka with 40 per cent alcohol content cannot be sold for less than €20.70 and a 700ml bottle of whiskey for less than €22.

With prices in the north unchanged the new regulations are expected to generate a huge boost for off-licenses in border regions.

While the Stormont executive has been urged to introduce similar legislation, consultation work has not been completed.

To date only a handful of countries in the world have introduced minimum pricing.

Scotland was the first in Europe in 2018 followed by Wales in 2020.

Elsewhere, minimum pricing has also been introduced in parts of Australia, Canada and the Russian Federation.

And while the drinks industry in the south may be taking a hit their counterparts north of the border are preparing to reap the harvest.

Joe Goodwill, who runs an off-license in Camlough, south Armagh, said he has noticed an increase in cross-border trade with some customers travelling from as far away as Cork and Limerick.

"January is typically a quiet month but already this weekend we've had maybe 20 plus southern people come up," he said.

"The biggest difference I've noticed is on Facebook and or phones, everyone seems to be shopping around, doing their homework, planning their trip.

"So I would expect towards the end of January we will see the biggest boost," he told RTÉs Joe Duffy.

When it was suggested that he will do "extraordinary well" looking ahead to St Patrick's Day and other possible holidays in the south Mr Goodwill added that "in any business you try and make hay while the sun shines".

Some retails across the border have registered a marked reduction in trade since the new regualtions were introduced.

Bernard McNally, who runs a business in Clones, Co Monaghan, said he noticed a 22 per cent drop in sales last week compared to this week last year.

"A significant drop in regards to cash turnover," he said.

"If you take your wage percentage it would be the equivalent of a job."