Irish Wine Drinkers Face Minimum $8.36 Price Tag for a Bottle

(Bloomberg) -- Ireland introduced minimum prices for alcohol in a bid to cut abuse and underage drinking, but critics fear the move may drive buyers to seek cheaper drinks in Northern Ireland instead.

The government set a minimum price of 10 euro cents per gram of alcohol in drinks sold in liquor stores, supermarkets and other shops from Jan. 4. which in practice means a bottle of wine with 12.5% alcohol must now be sold for at least 7.40 euros ($8.36), while a can of beer with 4.3% alcohol will cost at least 1.70 euros. Most liquor with more than 40% alcohol content will start at 20.70 euros. The law doesn't apply to bars, clubs and restaurants.

“This measure is designed to reduce serious illness and death from alcohol consumption and to reduce the pressure on our health services from alcohol related conditions,” Health Minister Stephen Donnelly said in an emailed statement. “It worked in Scotland and I look forward to it working here.”

The move makes Ireland one of the few countries, including Scotland, to have minimum alcohol pricing. While it has been welcomed by campaigners, opponents argue the change could lead to people traveling to Northern Ireland, where there is no minimum pricing.

“We are not opposed to the principle or the reasons for minimum pricing, but it needed to be introduced at the same time as Northern Ireland,” Vincent Jennings, Chief Executive Officer of trade group the Convenience Stores and Newsagents Association, said in a phone interview. “By doing it unilaterally, people in the Republic will inevitably travel to Northern Ireland to buy cheaper alcohol, and the health issues will remain.”

Cross-border travel due to “a significant price differential” between the Northern Ireland and the Republic could also undermine the tax take from alcohol sales, Ireland's Finance Ministry said in a September report.