Comment: We're dangerously obsessed with price

The past week has emphasised how dangerously obsessed with price we are.The trade's submissions in the run-up to the Budget are of huge importance,...

The past week has emphasised how dangerously obsessed with price we are.

The trade's submissions in the run-up to the Budget are of huge importance, but there is far more to the appeal of drinking in the pub than the prices at which licensees can sell it. The obsession with pricing embodied in this taxation debate worryingly shows the extent to which that is being overlooked, with alcoholic drinks viewed as little more than commodities.

Yes, the escalator is bad news for pubs' ability to sell booze and, yes, I would like to see the Chancellor's plans reversed, however unlikely this may be. Excise duty has increased on beer, cider and wine by 17.8 per cent since March 2008, and the promise of duty going up two per cent above inflation in subsequent years only makes things more difficult for licensees. But the most profitable brands and the most profitable pubs are those whose proposition is elevated above being based on price alone.

As one branding expert put it to me, no customer thinks twice about paying a 60 pence premium for a pint of Guinness rather than a pint of standard lager. Diageo's proposition is about quality and a consistent drip-feed of marketing that has allowed it to achieve crushing market dominance.

Similarly, while the Magners/Bulmers price war has caused a furore, Strongbow has stayed clear. It's the UK's leading cider.

By all means let¹s fight on the duty front, but let's keep the troops on other drinks battlefields too.