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From The Times
February 22, 2008

Tesco's risky line

Patrick Hosking: Business commentary

Tesco's attempt to take the moral high ground over cheap alcohol is in danger of backfiring.

Compared with Asda and Sainsbury, it has been more aggressive in discounting lager in the past year — thus possibly encouraging the very binge and under-age drinking it wants to stamp out.

The introduction of rules to put a floor under alcohol prices risks being needlessly complicated.

If — and it's a big if — it is really necessary to artificially push up the price of alcohol, why not just tax it more heavily?

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The money could be used to put more police on the street at closing time rather than just to fatten up the margins of Tesco et al.

patrick.hosking@thetimes.co.uk

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