Simon Litherland, the managing director of Diageo, Great Britain, has reiterated his company’s call for alcohol to be taxed per unit and labelled minimum pricing “a very blunt instrument” as a way of combating alcohol abuse.
Diageo has been criticised by Tim Martin, founder and chairman of JD Wetherspoon, the managed pub company, over its suggestion to the government that tax on spirits is frozen until the tax on beer and cider is set at an equitable level.
Commenting in The Grocer, a sister publication of M&C Report, Litherland said Diageo’s view on taxation had not changed “for a number of years”.
He said: “Diageo believes the tax system as it stands is unfair. The fairest way is to tax per unit of alcohol.”
When asked whether the company’s argument was self-serving, he replied: “No not at all. We’re unique in the market place in that we compete in beer and wine as well as spirits. Guinness for example, is one of our top three brands.
“If a fairer and more equitable tax system does [have a negative impact], we need to live with the consequences.”
On the subject of minimum pricing he added: “The vast majority of people drink alcohol responsibly and people who abuse alcohol will continue to do so even if it is more expensive.
“I’d much prefer to see targeted intervention aimed at the minority who use alcohol irresponsibly.”
