The Campaign for Real Ale (CAMRA) has accused supermarkets of contributing to the waning popularity of British beer and called on them to stop selling beer at below-cost. In a letter submitted to the Competition Commission, Iain Loe of Camra said his organisation is "increasingly concerned about the prevalence of below-cost selling of alcohol by the major supermarket chains".
The complaint echoes that of Scottish & Newcastle, the brewer of Strongbow and Fosters, which last summer called on supermarkets to stop selling lager as loss leaders - a problem that was contributing to binge drinking as well as falling profits at the major brewers. CAMRA, which champions real ale drinkers, argues that the policy has led to the slow but inexorable decline of beer-drinking in pubs as consumers buy cheaper alcohol from the supermarkets.
In 1995, 72% of all beer was sold through pubs and clubs, but this has fallen to 59% by 2005. The organisation reckons that 56 pubs are closing each month - a figure that is likely to escalate this year when the smoking ban comes into force across the country. Mr Loe praised Asda for stocking a selection of regional brews and said he hoped Tesco's policy of selling local milk could be extended to beer. Daily Telegraph
Further information
On 9 May 2006, the Office of Fair Trading (OFT) referred the supply of groceries by retailers in the UK to the Competition Commission (CC) for investigation.
‘Groceries’ is defined in the CC terms of reference as:
- including food (other than that sold for consumption in the store), pet food, drinks (alcoholic and non-alcoholic), cleaning products, toiletries and household goods
- excluding petrol, clothing, DIY products, financial services, pharmaceuticals, newspapers magazines, greetings cards, CDs, DVDs, videos and audio tapes, toys, plants, flowers, perfumes, cosmetics, electrical appliances, kitchen hardware, gardening equipment, books, tobacco and tobacco products.
Competition Commission Groceries Market Inquiry homepage
Scottish & Newcastle submission
Royal College of Physicians submission
CAMRA submission
John Grogan's PRICE OF ALCOHOL IN SUPERMARKETS AND OFF-LICENCES: Early Day Motion (495)
Comments