BEA683 Economics for Managers: Research Project
Student Name: Cong Thanh Luu
Student ID: 112318
Lecturer: Miss Cherie Moore
Due Date: Tuesday, 24th January, 2012
Alcopops Industry Overview
Alcopops, also known as “ready-to-drink”(RTDs) or “pre-mixed” drinks, are pre-packaged alcoholic beverage with the percent of alcohol varies from 4% to 8% for the “premium”or “super-strength” alcopops (Drug Info, 2008). Alcopops are reported to be the most popular among 12-16 years old, account for 46 percent compared with 20 percent popularity in over 18s (Australin Division of General Practice 2003).
As alcohol taste is masked by adding milk, fruit juice or carbonated water, it is more attractive to young people who are not interested in the bitter or astringent taste of alcohol (Munro, Learmonth, 2004). As a result, many young people cannot detect the taste of alcohol with either sweet mixes when drinking, leading to the larger consumption than they would. The research from Standing Committee in Community Affairs in 2008 stated that 39% of young people from 18 to 19 years old thought the RTDs does not contain alcohol. This misconception results in lots of social and economic consequences.
Arguments of the social and economic consequences on imposing “alcopops” tax
As the alcopops consumption increased continuously over the years, especially for female drinkers, the female drinkers aged from 15-17 years raised from 14 percent in 2000 to 60 percent in 2004 (King et al 2005). In April 2008, an increase in tax was passed on alcopops, raising the tax rate of RTDs in line with rate of the full strength beer. This tax was passed in order to make RTDs less affordable to young people and lower the underage binge drinking. However, there are opposition arguments on implementing alcopops tax.
People who advocate the implement of alcopops tax argued that the amount of RTDs consumption decreased significantly of 30.2 percent (from 18.7 million litres in...