Tesco throws down minimum alcohol pricing gauntlet to new government

21st May 2010, 12:47pm

High street supermarket, Tesco has today became the first UK retailer to support the new coalition government's commitment to ban the sale of alcohol below cost.

Britain's biggest retailer welcomed the commitment as part of its announcement of a wide-ranging package of measures to cut down on anti-social drinking and help consumers keep within healthy drinking limits.

Other measures include putting units on the front of bottles of alcohol for the first time, and a major new Community Alcohol Partnership in central London.

It added that should new Ministers decide to opt for a minimum unit price for all beers, wines, ciders and spirits, Tesco would also stand ready to support them on this.

Tesco executive director for Corporate and Legal Affairs, Lucy Neville-Rolfe, said: "Pricing controls can only be effective if they apply to all alcohol retailers and the only way that can happen is through government taking the lead. Any attempt by retailers to form agreements on prices, even with the well intentioned aim of tackling such a serious social issue, could fall foul of competition laws and lead to retailers being fined and potentially prosecuted.

"We acknowledge that our own sales of alcohol might be impacted but if these measures have the desired effect of helping to reduce harmful drinking, then it will be worth it. So today I welcome the new Government's commitment to act on below cost selling and pledge that we will play a constructive role in government-led action to make this happen. We will also support any future discussions on a minimum price."

Brigid Simmons, chief executive of the British Beer and Pub Association said: "We very much welcome the Government's announced intent to ban below cost selling. This is a further positive step in tackling the irresponsible promotion of alcohol. It is also a move towards setting a more level playing field between supermarkets and pubs, where irresponsible promotions are already banned by law. We want our beers to be enjoyed, not abused and are committed to working with all stakeholders to tackle irresponsible drinking.

"Tesco's positive response to the proposals is also a welcome recognition that action is needed to ban certain supermarket promotions that are widely considered to be irresponsible. We look forward to working with both our colleagues in the supermarkets and Government to develop the necessary practical detail in order to ensure the policy is robust and effective. Any effective solution should avoid the blunt tool of tax. After record duty increases in recent years the British pub and brewing sector now deserves support from the Government."

Don Shenker, chief executive of Alcohol Concern said: "Alcohol Concern welcomes this announcement from Tesco and sees these measures as important first steps towards more responsible supermarket alcohol sales. Tesco's plans acknowledge that consumers themselves want supermarkets to tackle the cheap price of alcohol to reduce alcohol-related harm. We believe this will rightly deter excessive drinking, improve health and save costs. We urge the Government to ensure the 'below-cost' threshold reflects the evidence on the need to reduce alcohol's rising affordability."

Related Articles:

• 02 Sep 2010 - Minimum alcohol price for Scotland to be set at 45p

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