Whisky woes taken to the EC

The Scotch Whisky Association (SWA) has launched legal action against minimum pricing of alcohol.

It has lodged a complaint with the European Commission and, along with other drinks companies, has filed a petition for judicial review with the Court of Session.

SWA’s complaint to the EC states that minimum unit pricing (MUP) breaches EU competition rules and would artificially distort trade in the alcoholic drinks market. It is concerned that other member states might adopt MUP measures and use a “protection of health” justification to target imported products, which could cost the Scotch whisky industry £500m in exports.

It is seeking judicial review on the grounds MUP breaches the UK’s EU Treaty obligations and runs contrary to the terms of the Scotland Act 1998.

Gavin Hewitt, SWA chief executive, says: “Despite warnings that minimum pricing of alcohol would be illegal, the Scottish government has pressed ahead with its ill-targeted policy and misguided legislation.”

Co-petitioner Jose Ramon Fernandez, on behalf of the European Wine Committee, says: “We believe the setting of a minimum price contravenes rules governing the wine common market organisation across the EU.

“It will also act as a discriminatory barrier to trade for imported wines from companies which enjoy a competitive lower cost base.”

In March, the government proposed introducing a minimum price of £0.40 per unit of alcohol in England and Wales.