Smoking ban hides bigger worries for Irish pubs

From reuters a well written piece by Paul Hoskins

www.reuters.co.uk/newsPac...ction=news

"There's been a significant sea-change in our drinking habits and the smoking ban is part of that but it's not the root cause," said Kieran Tobin, spokesman for Irish Distillers, the maker of Jameson whiskey and Cork Dry Gin.

"There's a whole host of factors that are conspiring to accelerate that trend: lifestyle, demographics, drink-driving, increases in taxation and greater price sensitivity."

Even before Ireland became the first country to outlaw smoking in the work place, consumers were rejecting the pub in favour of the off-licence, shops selling liquor where prices are lower and the choice broader.

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Does any one disagree with Kieran Tobin's analysis that ....there's a whole host of factors that are conspiring to accelerate that trend: lifestyle, demographics, drink-driving, increases in taxation and greater price sensitivity?

ajapale

increases in taxation

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This is the only one that confuses me. Does he mean an increase in the tax take on drink - if so when ? Was it a VAT rise ? Does he mean tax increase in wages, then I don't think an extra PRSI on BIK would make that much difference.
These rises (??) are miniscule. Am I missing something ?
I would agree with the other points made.

What he is refering to is the c.40% increase in excise duty on spirits imposed by McCreevy two budgets ago. It has had a punitive impcat on the price of Jameson, for example, making this country one of the most expensive places in the world to purchase a bottle and it's made here.

Re: Re: Smoking ban hides bigger worries for Irish pubs

I would never buy spirits in Ireland. Duty free prices really make you realise what a rip off Irish spirits are. Litres of good quality (duty free) whiskey can be bought for €14.

Ddddrinkkkk

Yes, Davido

Significant savings to be made by buying spirits even in the North of Ireland

e.g. Gin about 40% less expensive in N.I.

Re: Re: Smoking ban hides bigger worries for Irish pubs

What he is refering to is the c.40% increase in excise duty on spirits imposed by McCreevy two budgets ago. It has had a punitive impcat on the price of Jameson, for example, making this country one of the most expensive places in the world to purchase a bottle and it's made here.

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I take your point (I'd forgotten that raise) but in the context of the article above would that not make off-licence sales dearer also ? This to me appears like another attempt to gloss over the fact that publicans are making a vast profit on spirits and simply a smokescreen for sympathy.

Re: Re: Smoking ban hides bigger worries for Irish pubs

publicans are making a vast profit on spirits

I'm not one to really go on the defence of publicans, but I can't honestly see how they could be making vast profits on spirits when the Government has them taxed so highly.

There's a certain limit that most sane and non-alcoholic people will pay for a measure.

I suppose we'll know for sure when we see publicans handing the keys in.

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'I can't honestly see how they could be making vast profits on spirits when the Government has them taxed so highly.
There's a certain limit that most sane and non-alcoholic people will pay for a measure.'

There's about 25 shots in a litre bottle of vodka. Shots of vodka are about €4 in most Dublin pubs. Thats €100 the publicans charge per litre. They buy the larger serving bottles in bulk and I'd imagine pay around €15 a litre at most, though I can find this out for sure. There's no amount of taxation that can hide the fact they're charging exorbitant prices.

And don't get me started on the percentage margin they charge on soft drinks.

Re: ...

Your calculation ignores a lot of the real costs in the bar - the barman serving the drink, the washing of the glass, the bouncer at the door, the lighting/heating/music, the insurance for when you slip & fall etc etc etc

price of spirits

In a 1000ml bottle there are more than 25 shots. A shot is 35.5ml, so there are maybe 28 shots (no calculator).

Also, 1000ml bottles aren't used much in Ireland. 700ml and 1125ml are more common in pubs.

Anyway, take a 700ml bottle of vodka, with 20 shots. This retails at ˆ20 in shops, approx. The publican sells it for 20*3.50 = ˆ70. The publican pays maybe a bit less than 20.

The margins are generous, even taking Rainyday's point about all the high overheads.