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Alcohol price movements since December 2016
​​Date: 22 Aug 2018
Category: Economics

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We take a look at the latest price data published by Statistics South Africa and compare the price movements of various types of alcohol sold in South Africa, and find that the price of spirit coolers/ciders increased by more than any other type of alcohol in South Africa since January 2017.

Interestingly Whiskey showed the lowest price increases since January 2017.

• Average rump prices

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So spirit cooler/cider prices increases faster than any other type of alcohol?

The line chart below shows the index levels from January 2017. The index levels of all the various types of alcohol was set to 100 in December 2016. Essentially any value above 100 shows the price of a specific type of alcohol declined compared to December 2016, and index levels above 100 shows the price increased compared to December 2016. So for spirit coolers/ciders for example in July 2018 the index level is 115.6. What that means is that since December 2016, the price of spirit coolers/ciders increased by 15.6%

The alcohol type that showed the second highest price increases from January 2017 is that of Brandy, which increased by 13.2% from the December 2016 level. In third place is red wine prices which increased by 11% from the December 2016 levels. Below a summary of the 8 most bought alcohol types in South Africa and their price increase since December 2016

• Spirit coolers or cider: 15.6%
• Brandy: 13.2%
• Red wine: 11.0%
• Vodka: 10.6%
• Liqueur: 9.3%
• Beer:  8.9%
• White wine: 8.8%
• Whiskey: 7.0%

From the above one wonders if whiskey distillers are trying to keep price increases to a minimum in order to lure buyers away from other liquor such as Vodka and Brandy? As the difference in price increases over the last year and a half between say Whiskey and Brandy is substantial. And perhaps its time that spirit cooler/cider drinkers switch over to drinking beer. As their wallets will be very thankful for the fact that beer price increases seems to take place at a rate far slower than that of spirit coolers/ciders.

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