Economic consequences of proposed alcohol marketing restrictions
The significant economic contribution of the alcohol sector to the Scottish economy could be damaged by the proposals set out in the consultation on alcohol advertising and promotions being considered by the Scottish Government.
A new study shows that the sector contributes £6.3 billion in Gross Value Added (GVA) to the Scottish economy, supporting 94,400 jobs.
Employment in the production of alcohol is geographically concentrated, with one in four production jobs in the Highlands and Islands Scottish Parliamentary Region. The top five Scottish parliamentary constituencies by alcohol production jobs are: Moray (14% of Scottish jobs in the sector), Dumbarton (9% of jobs), Mid Fife and Glenrothes (9% of jobs), Uddingston and Bellshill (6% of jobs) and Glasgow Kelvin (5% of jobs). The economic impact is not evenly distributed, and so any reduction in its contribution to the economy will be disproportionately felt in rural Scotland, where the manufacturing jobs are most needed. The demand-side (hospitality and retail) economic impacts are concentrated in Scotland’s cities.
The report shows the alcohol industry is highly competitive, innovative and a growing sector in Scotland where branding and advertising are essential for business growth and survival. It is not only important to the Scottish economy in terms of income, jobs and exports. It is also a highly productive sector and so a driver and source of economic growth. Entrepreneurial and dominated by micro businesses in brewing and distilling, it is also a strong influence on other sectors such as tourism, culture and advertising.
“The Scottish Government launched its National Strategy for Economic Transformation in 2022. The alcohol sector will be a major contributor to delivering that strategy. However, the marketing restrictions being suggested undermine the majority of goals set out the strategy. They represent an existential threat to many successful small alcohol businesses in Scotland with knock-on impacts on other sectors.”
Notes to Editors:
1. The report was commissioned by the Scottish Alcohol Industry Partnership (SAIP). A copy can be found here.
2. The SAIP is a partnership of alcoholic beverage producers and representatives of the on-trade and off-trade in Scotland which includes:
Diageo, BII Scotland, National Association of Cidermakers, Molson Coors, TLT, Scottish Beer & Pub Association, Heineken, Bacardi, Pernod Ricard, The Scotch Whisky Association, Scottish Licensed Trade Association, Wine & Spirits Trade Association, Scottish Retail Consortium, Whyte & MacKay, Scottish Grocers’ Federation and The Portman Group
It provides a platform for the alcohol industry to promote responsible drinking and contribute towards tackling alcohol-related harm.
3. For more information on the report call Graeme Blackett, Biggar Economics. Tel no. is 07890 998147
4. GVA – Gross Value Added - is a measure of economic output. For organisations and sectors it can be defined as total turnover (the value of outputs) minus the costs of inputs (bought in goods and services).
5. All figures used are from 2019, pre-pandemic.