SLOP4230: Retail Alcohol Economics
Twelve weekly lectures, one continuous argument about what a shelf price is made of.
Over twelve weeks, we advance a singular, unbroken argument: a retail price is a composite of four calculable vectors: baseline production cost, category-specific federal taxation, retail margin, and spatial shelf-position value. Every module is dedicated to measuring and exploiting these specific terms.
The Twelve-Week Progression
- Phase I: The Chemical Baseline (Weeks 1–3): We establish the absolute price floor of industrial fermentation and quantify the logistical margin efficiencies of alchol distribution.
- Phase II: Regulatory Exploitation (Weeks 4–6): We map federal taxation mechanics, pitting the Wine Equalisation Tax (WET) loophole directly against the punitive volumetric excises applied to distilled spirits.
- Phase III: Spatial & Algorithmic Optimization (Weeks 7–10): We move to the retail floor, mapping the spatial obfuscation of suburban liquor outlets before deploying automated scrapers to mathematically maximize the ABV-to-dollar index across live datasets.
- Phase IV: Synthesis & Ethics (Weeks 11–12): We confront the public health externalities of hyper-efficient alcohol procurement before scaling your optimization algorithms to macro-event logistics.
Pedagogy: Lectures, Labs, and Decks
Theory without practice is mere speculation. Each weekly module consists of a core lecture, a linked presentation deck, and an Applied Computational Lab. In these labs, you will compute the week’s specific vector by hand using a real-world SKU you have selected. An economic term you have not calculated yourself is a term you cannot defend in your final assessment.
Course Literature
Every week draws upon two distinct tiers of literature. The core reading gave the baseline for the week’s lecture. The mandatory reading consists of linked, published papers, tax guidelines, and health-economics reports. You are expected to read and extract the empirical data from these external sources to ground your analysis in reality.
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Establishing the chemical and economic baseline: fermentation margins and the absolute price floor of industrial alcohol before taxation.
lab: Getting started
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Dismantling the public health framing of the standard drink to establish the ABV-to-Dollar Index equation and standardize our baseline currency.
lab: First review
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Quantifying the margin improvements of bag-in-box distribution through logistical payload optimization and spatial geometry.
lab: Decomposing a cask
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Deconstructing the ad valorem mechanism of the Wine Equalisation Tax and the structural advantages of volume-agnostic taxation.
lab: Working the WET
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Analyzing demand elasticity, localized discount cycles, and the use of premixed spirits as retail loss-leaders.
lab: Reading a promotional cycle
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Analyzing extreme volumetric excise penalties on distilled spirits and the regulatory subversion of fortifying fermented goods.
lab: Tax per standard drink
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Applying Geographic Information Systems (GIS) to interior retail environments to map the deliberate obfuscation of tax-efficient inventory.
lab: Mapping an outlet
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Quantifying cognitive biases in retail purchasing and the visual obfuscation of tax-inefficient inventory.
lab: Auditing an endcap
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Programmatic extraction of live pricing data: DOM parsing, HTTP requests, and structural data hygiene.
lab: First hundred rows
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Combinatorial optimization and algorithmic processing of large-scale retail datasets to identify structural market outliers.
lab: Greedy against the constraint
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Bioethical dimensions, negative societal externalities, and public health economics of hyper-efficient retail alcohol distribution.
lab: The externality statement
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Scaling algorithmic optimization to physical supply chains: payload mathematics, volumetric displacement, and economic synthesis.
lab: Portfolio dry run