Tesco and Greene King join minimum pricing camp

News last week that the Chief Executive of Tesco, Sir Terry Leahy, has backed minimum pricing has prompted a rush of media coverage - see Telegraph and Times stories. Leahy came out backing the new coalition Government's plans to ban below costs sales, but went a step further to support minimum pricing. Leahy's support was announced after a survey found that nearly 70 per cent of Tesco customers thought excessive drinking was one of the most serious issues facing Britain.

The Times responded with a briefing on alcohol pricing in which they suggest the Government plans to ban below cost selling are 'hard to implement'. Alcohol Concern and other health groups have called for minimum pricing on similar grounds. Don Shenker of Alcohol Concern said: “We welcome this announcement from Tesco and see these measures as important first steps towards more responsible supermarket alcohol sales."

However critics have suggested Tesco have only backed minimum pricing because it would boost profits. A Daily Express story quoted Scottish MSP Richard Baker as saying it would gift a '£113million windfall to the supermarkets and other retailers'. The Scottish Government have been trying to secure minimum pricing without the support of opposition parties. Other opponents such as the British Retail Consortium (BRC) have continued to argue the problem is a cultural issue.

This week brewer and pub operator Greene King also called out for the Government to further explore the minimum pricing route. Greene King chief executive Rooney Anand said "excessive drinking by a minority of alcohol consumers is fuelled by its availability at heavily discounted prices, particularly high strength alcohol products and lager brands bought off-trade." Scotland's largest brewer Tennants was the first main industry body to shock the field by coming out in favour of minimum pricing. 

As Scotland attempt to secure minimum pricing in the Alcohol Bill, the coalition Government will attempt to 'ban below cost alcohol sales' and 'review alcohol taxation and pricing to ensure it tackles binge drinking without unfairly penalising responsible drinkers'. The Welsh Government are reportedly preparing plans to adopt minimum pricing. 

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Comments

[james]

Valid points Helen. But also supermarkets often sell alcohol below a possible minimum price as a "loss-leader". However the "loss" is no doubt made up on other products whether it be bread or orange juice. So in fact non-drinkers could be argued to be subsidising cheap alcohol through no choice of their own. So the arguments for rasining tax, or a levy as you say, have their supporters!

[Helen Catterall]

It may be a surprise to some that supermarkets are in favour of minimum pricing for alcohol, but when you consider that this step would only increase their profit margins, perhaps it is not so surprising after all. Maybe there should also be an additional levy on alcohol, which ensured that money is ring-fenced and used for alcohol rehabilitation programmes?