Establishing a minimum price floor of just 45 cents per alcohol unit for distilled spirits could reduce alcohol consumption by 3.9 percent and prevent alcohol-related deaths by 8.1 percent, according to a new study.
The study, conducted in Michigan, examined the potential impact of alcohol pricing policies aimed at curbing harmful drinking in the state. Michigan controls both the sale and distribution of distilled spirits within its borders and has explored minimum unit pricing as a strategy to reduce alcohol-related public health issues.
What Did the Study Find?
Published in the Journal of Studies on Alcohol and Drugs, the study examined whether establishing a minimum price per alcohol unit could influence drinking behaviors. The rationale was that consumption patterns are impacted by the cost of alcohol. Minimum unit pricing (MUP) policies base the price floor on either the standard drink amount or total container volume.The researchers found that hiking the minimum price to 40 cents per unit for the cheapest spirits could prevent 232 or 5.3 percent of alcohol-related deaths annually in Michigan. Further raising the floor to 45 cents per unit could avoid another 122 deaths, for 354 total deaths averted, which is 8.1 percent of alcohol-related deaths in the state.
The 45-cent threshold would likely prevent more deaths among males, particularly men ages 35-64 years old. It could also save more lives among those who drink heavily versus moderate drinkers.
However, minimum unit pricing may not impact mortality rates for those with alcohol use disorder. Additionally, lower-income drinkers appear more likely to decrease their intake as costs increase. “As such, MUP policies might reduce alcohol-related health disparities,” the research team wrote.
Analyzing 2020 Michigan liquor sales data, the researchers noted 9,747 distinct products totaling 1.9 billion standard drinks sold. Increasing minimum pricing to 45 cents per unit at retail stores for off-premise consumption would hike the average price by just 13 cents across 776 spirits. But it would impact nearly 12 percent of all standard drinks purchased.
Minimum Alcohol Pricing Common Abroad
Minimum unit pricing policies for alcohol are already widely used internationally to reduce harmful drinking and associated deaths. Studies have shown the effectiveness of such policies in the UK and Canada at lowering both alcohol purchases and related health and social harms, the researchers noted.Minimum unit pricing policies in Scotland and Wales led to fewer alcohol sales, especially among households buying the most. Three years after Scotland implemented minimum pricing, the country saw a 3 percent net drop in overall retail alcohol sales.
Beyond just reducing consumption, these alcohol pricing policies have improved public health outcomes. Countries and communities with minimum unit pricing have reported decreases in hospitalizations and mortality attributable to excessive drinking.
“The Organisation for Economic Cooperation and Development (OECD) assessed the effectiveness of alcohol interventions and found that minimum pricing policies were the second most effective one, behind increasing taxes,” the research team wrote.
Yet, despite this evidence, minimum unit pricing remains uncommon in the U.S. Only Oregon has such a policy in place currently.
