Irish travelling north to buy drink
The drinks industry claimed today it was suffering losses as thrifty shoppers headed north to buy cheaper drink.
Drinks companies have urged 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."
A study showed consumers who bought alcohol north of the border saved more than 30% on leading alcohol brands including: €9.50 on cognac, €8 on whiskey and €7 on vodka.
Recent figures revealed alcohol consumption in the Republic is down by 7% this year alone while last month saw a 14% fall compared to August last year.
"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."
