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Research Article

The effects of real price and a change in the distribution system on alcohol consumption

Pages 371-378 | Published online: 12 Jul 2009
 

Abstract

Time-series analysis of alcohol consumption data has shown an impact of real price on alcohol consumption in NZ in the decade 1984-96. Beer consumption was reduced by real price increases and wine consumption was increased by real price decreases. By contrast, during this period spirits were price inelastic. A further influence on alcohol consumption was the introduction of wine into grocery stores, which led to a sudden permanent increase in wine consumption 3 months after the legislation came into force. Beer and spirits were not introduced into supermarkets at this time and while there was no effect on beer consumption there was a significant decrease in spirits consumption.

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