Drinks' Trade Leaking North

A northern exodus is hitting Irish drinks' companies.

The Republic's drinks' industry claimed this week that it was suffering losses as shoppers headed to Northern Ireland to buy cheaper booze.

Coming on top of similar claims on grocery shopping, there is growing cause for concern.

The drinks' industry representatives are now set to urge Dáil Finance Minister Brian Lenihan not to increase taxes on alcohol in the upcoming Budget as consumers continue to tighten their belts.

The Alcohol Beverage Federation of Ireland (ABFI), which represents drinks manufacturers and suppliers, said the surge in people buying alcohol in the North is affecting sales in the Republic.

"The Northern off-trade sector is growing at a rate of 20%, mainly as a result of increased custom from the Republic," said ABFI Director Rosemary Garth.

"This compares with flat growth here in the south.

"This is a worrying situation from the point of view of both the industry and the government."

No wonder, as consumers who buy alcohol north of the border are saving more than 30% on leading alcohol brands including: €9.50 on cognac, €8 on whiskey and €7 on vodka.

Against a trend of reduced consumption, with recent figures revealing that alcohol consumption in the Republic is down by 7% this year alone - while last month saw a 14% fall compared to August last year - it looks like there's something to be concerned about.

"If consumers travel North for a better deal, we lose out on vital custom in difficult economic times," continued Ms Garth.

"For the State, the loss in excise and VAT revenue has obvious implications."

ABFI said the Government must protect jobs in the industry by not increasing excise duties.

"The drinks industry makes a €2.2bn contribution to the Irish exchequer and supports the equivalent of 61,000 full time jobs," said Garth.

"The country must not do anything that further erodes our competitive position."

The call comes on foot of concerns on grocery shoppers also going north.

A survey by the National Consumer Council (NCC) recently showed the disparity between the Republic's prices and that of Northern Ireland is steadily growing, prompting shoppers to cross the border for their groceries.

See: Shoppers Fly North For The Winter

(BMcC)