MUP Increase: A Guide for PGMA Members

The Scottish Government announced an increase in the Minimum Unit Price (MUP) of alcohol from 50p to 65p a 30% increase. This change is looming and is set to take effect on 30th September 2024, it will significantly impact the retail industry.This blog post will guide PGMA members through the implications of this change and provide practical advice on how to prepare your business.

Understanding the MUP Increase:

The Minimum Unit Price (MUP) is a legal price floor below which alcohol cannot be sold. Its purpose is to reduce alcohol-related harm by making it more expensive and less accessible. The upcoming increase from 50p to 65p per unit represents a substantial change that will affect the pricing structure of many alcoholic products.

It's crucial to understand that this change will impact not only the prices of individual products but also the overall profitability of your alcohol sales. Some products may become unprofitable at the new MUP, necessitating adjustments to your product range.

Using the SGF Calculator:

To help you navigate this change, the Scottish Grocers Federation has provided a MUP calculator. This tool allows you to determine the minimum price for any alcoholic product based on its alcohol by volume (ABV) and volume.

How to use the SGF calculator:

1. Visit the SGF calculator website. Click here

2. Enter the ABV of the product.

3. Enter the volume of the product in millilitres.

4. The calculator will provide the minimum price for that product based on the current or new MUP.

By using the SGF calculator, you can accurately assess the impact of the MUP increase on your product range and make informed pricing decisions.  

Preparing Your Business for the MUP Increase

To ensure a smooth transition, consider the following steps:

• Plan your time, all the New MUP prices must be in place on the 30^th September 2024 for you to remain legal.

• Utilise the SGF calculator: Calculate the new prices for all your alcoholic products using the SGF calculator.

• Update your pricing: Implement the new prices for your products. Clearly communicate the price changes to your customers.

• Manage your stock: Monitor your stock levels closely. Raising the minimum price will have an impact on comparative pricing and may change people’s choices.

‍

Don’t miss out on essential insights and support. Join us at the SGF conference on Wednesday, 2nd October. PGMA will be there to answer your questions and provide further guidance on navigating the MUP increase.