Fears that supermarkets will still be able to sell alcohol at 'rock bottom prices' despite the proposed 'ban on below cost sales' have been highlighted by the Morning Advertiser (MA). The report 'Off-trade can beat below-cost ban' suggests a definition of 'below cost' supported by a leading industry body would still allow beer to be sold for for about 54p a can and wine for £2.33 a bottle.
Speculation over whether the below cost ban can be effective has centred on concerns over how 'below-cost' would be defined. The method of calculation appears not to have been agreed but the MA suggests 'calculating cost price any other way [than duty + VAT] is almost impossible because there are so many variables'. However Mark Hastings of the British Beer and Pub Association (BBPA) said cost price could be determined by stores telling a Government agency in confidence how much they pay. Hastings said “The Competition Commission currently handles such data in confidence so it can be done. This is the system that operates in Spain — so if they can do it, I’m sure we can!".
Another MA report highlighted that the Association of Licensed Multiple Retailers (ALMR) is 'backing a united lobbying effort to ensure there’s no “wriggle room” for supermarkets in the crackdown on cheap deals'. Kate Nicholls, head of communications for the ALMR said in reference to the below-cost ban that the 'devil will be in the detail'. Nicholls also appeared to support the Government plans to 'overhaul' the Licensing act since de-regulation had allowed supermarkets to 'exploit alcohol as a footfall driver'. She also called for the mandatory code to include irresponsible promotions by the off-trade.
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