Price Of Spirits

Press, Volume CVIII, Issue 31765, 23 August 1968, Page 12

Price Of Spirits

Sir,—A Price increase of 30 cents for whisky, and the expected increase in price of other spirits through devaluation Is unjustified. The liquor industry should note that the effect of devaluation should be 6. per cent on approximately $2, the basic landed cost, not 6 per cent on the retail price, which includes customs and sales tax, and Importer’s, wholesaler’s and retailer’s mark-up. My calculations show that 12 cents would be a realistic increase, but should not apply to New Zealand-made gin and vodka. —Yours, etc., D. G. CHRISTIE. August 19, 1968.

[Mr B. H. Ballin, president of the Canterbury Provincial Wholesale Wine and Spirit Merchants* Association, replies: “The increase had been brought about by a rise Of 11] per cent on the f.O.b. price from the United Kingdom. This is an actual increase which the Scotch Whisky As-

sociation has seen fit to put on the f.o.b. price of Scotch from Scotland following devaluation in England of the £ sterling. This increase is in addition to the 6 per cent increase on f.o.b. prices as a result of devaluation of the £ sterling and the New Zealand dollar. These two increases together make an actual Increase in the f.o.b. price of 17 per cent. There is no increase contemplated on New Zealand-made gin and vodka.”]