The study, which is due to start next month, has been requested by the Attorney General and will see the Jersey Competition and Regulatory Authority assess the pros and cons of such initiatives, with research to be carried out on how they have worked elsewhere in the world.
The impact of selling alcohol below the minimum price limit of 50p per unit of alcohol will also be considered.
Last year the States approved a proposition lodged by Deputy Lindsay Ash calling for regulations to be relaxed to allow on-licence and off-licence alcohol price promotions. The Licensing Assembly will have the final say on whether the changes are made.
The reintroduction of price promotions was opposed by the Jersey Hospitality Association, whose then chief executive Simon Soar said that they could erode profits in a sector which has already suffered heavily during the Covid-19 pandemic. Guidance issued by the Attorney General in 2019 upheld the existing position in Jersey, whereby the introduction of alcohol price promotions is opposed on the basis they encourage consumers ‘to drink to excess’.
Peter Hetherington, senior economic case officer at the JCRA , said that the study would focus on pricing and promotions outlined in this guidance.
‘Examples of this in on-licence premises are buy one drink, get one free, or happy hours. In off-licence premises, it would be selling drinks at a price lower than the established 50p per unit of alcohol,’ he said.
‘We will look at comparable international experience, and analysis of past precedent and case studies. Interviews will be conducted with stakeholders and surveys used where appropriate.’
A statement released by the JCRA says that the review ‘will consider any actions that could help improve market outcomes and support broader policy objectives’.
Its adds: ‘The alcohol market is a significant and important one for Jersey, contributing considerable government revenues through duties and taxes. While the authority recognises the health and social impact of alcohol, the study focuses on the economic impact and how it may affect competition between licensed premises, and consumer choice.
‘The study will seek to understand if there is any unintended consequences from the current guidance on drinks pricing and promotions.’
