Australia: Higher Taxes on ’Alcopops’ Cut Consumption

Sales of alcopops fell 26 percent in the three months after Australia increased taxes on the sweet alcoholic drinks, The Australian reported March 2.

The tax was increased in April 2008. Researchers said about half of the decrease in sales could be attributed to cuts in alcohol intake, while other former alcopop consumers switched to drinking cheaper beer and wine.

Liquor sales also rose 11 percent after the tax hike. Still, “there has been a meaningful decline in ready-to-drinks, it hasn’t been wholly offset to beer and spirits,” said lead researcher Tanya Chikritzhs of Curtin University’s National Drug Research Institute.

Alcohol-industry officials said the decline in alcopop sales was due to decreased marketing of the products, not the tax increase.

The study was published online in the Medical Journal of Australia.