The effects of real price and a change in the distribution system on alcohol consumption

Time-series analysis of alcohol consumption data has shown an impact of rea l price on alcohol consumption in NZ in the decade 1984-96. Beer consumptio n was reduced by real price increases and nine consumption was increased by real price decreases. By contrast, during this period spirits were price i nelastic, A further influence on alcohol consumption was the introduction o f wine into grocery stores, which led to a sudden permanent increase in win e consumption 3 months after the legislation came into force. Beer and spir its were not introduced into supermarkets at this time and while there was no effect on beer consumption there was a significant decrease in spirits c onsumption.