Steve Hawkes, Retail Correspondent and Patrick Foster
We've made some changes
to The Sunday Times
Tesco was branded as hypocritical last night over its call for a ban on the
sale of cheap alcohol, after figures showed that it has slashed at least
three times more from the price of leading beers, wines and spirits than its
rivals in the past year.
Research for The Times reveals that Britain’s biggest supermarket has
cut an average of 10 per cent off the price of more than a dozen leading
brands since February 2007.
Over the same period the prices of the same products at J Sainsbury have
fallen by 2.8 per cent and Asda’s have risen by 1.3 per cent.
Despite urging Gordon Brown to introduce legislation to “ensure responsible
pricing” yesterday, Tesco has reduced the price of a can of Carling lager to
54p and a 12-pack of Guinness by 30 per cent this week.
Critics rounded on the supermarket giant, accusing it of being more concerned
with grabbing headlines than taking action.
Tesco’s call came after months of intense criticism of the supermarket sector
for selling cut-price booze and failing to do enough to tackle underage and
antisocial drinking. The resulting publicity is thought to have prompted the
Morrisons chain to pull advertisements for discounts on beers and wines this
weekend.
Julian Le Grande, chairman of Health England, said: “For Tesco to cut prices
to this extent, particularly in a world where you have an increasing threat
from alcohol and the trend of binge drinking, and at the same time calling
for a ban on cheap alcohol – there is an element of hypocrisy in that. For
years many supermarkets have been cutting their prices at the same time as
often claiming complete innocence, that they’re just doing what the consumer
wants.”
A spokesman for Alcohol Concern said: “It’s disappointing that the first
major chain to acknowledge the contribution that loss-leading makes to
alcohol harm is nevertheless the biggest discounter. Tesco got an awful lot
of coverage for what they’ve said. These figures reinforce the need for
robust government action if we are to see the end of deep discounting and
all the harm that it can cause.”
The Department of Health refused to comment. It had issued a statement
yesterday from Dawn Primarolo, the Public Health Minister, praising Tesco
for its move to “share their concern about the impact of cheap alcohol on
the health of the public”.
The Competition Commission revealed last autumn that all leading
supermarkets, including Waitrose, regularly sell alcohol at below cost in an
attempt to lure customers and boost sales.
Between January 2005 and the World Cup in the summer of 2006, Britain’s nine
biggest grocers generated 3 per cent of their total revenue from below-cost
selling of alcohol and other goods, such as canned vegetables.
Tesco is the first supermarket to break cover but said that it would not put
its prices up unilaterally as its customers would simply shop elsewhere.
It called instead for a mandatory price rise instigated by the Government.
Sir Terry Leahy, Tesco chief executive, has already had a private meeting
with the Prime Minister to discuss measures to tackle the rise in underage
drinking.
One industry insider said that Tesco’s move was a way of placing the problem
of cut-price alcohol back in the Government’s lap.
Another source said: “Tesco has been very cute. If anything it’s given them
the perfect opportunity to show just how cheap their beer and wine is just
ahead of the end of their financial year.”
Tesco said that the figures compiled for The Times “miss the point of
our announcement”.
Lucy Neville-Rolfe, Tesco’s executive director for corporate and legal
affairs, said: “We can’t put up our prices because people will simply shop
elsewhere – it could be commercial suicide - and we can’t act together to
put up prices because that would be against competition law. Supermarkets
are not allowed to act together to put up prices because that would be bad
for the consumer. The only safe solution is for the Government to initiate
and lead these discussions and to bring forward legislative proposals which
Tesco and others in our industry can support” she added.
Andy Bond, the chief executive of Asda, is due to announce his chain’s own
measures to counter underage drinking on Monday. These are expected to
include a move to increase the number of IDs checked at the tills.
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If the supermarkets are allowed to create a cartel to fix the price of alcogol - where does it stop? Increase the price of food to combat obesity?
When did the supermarkets obtain the right to tell its customers what they can and cannot consume? If these companies really did care about the state of our health, why are they still selling tobacco and the like?
The supermarkets have become far too powerful and now is the time to boycott them - going back to local shops where the owners actually care about the community they serve. If I am going to be forced by the Supermarket cartel to spend more on the alcohol I do drink, I would rather support my local store than giving more money to Tesco. Furthermore, in my recent Clubcard Statement, Tesco had sent me vouchers for free Cider and points on Beer - something doesn't quite add up!?!
andymc666, Huddersfield, England
Pass the underage drinking law as soon as possible to save our local communities and the livers of these deluded teens.
John, Stoke On Trent, Staffs
Rob, London. I think you've missed the point. Although supermarkets can't collude to increase, or decrease, prices, they are all fully aware of what each of their competitors is selling items for. Tesco, for instance, has it's own price comparison website. The argument is that Tesco have called for legislation to prevent the sale of cheap alcohol, despite being the seller of the cheapest alcohol. Presumably, in this instance, every little doesn't help.
David Leslie, Perth, Scotland
Why should those of us who drink small amounts sensibly, be penalised because of others who drink too much and go on binges? I go for drinks deals and happy hours because of the price, not to drink twice as much. Otherwise it would be too expensive for me.
Why should I be punished for my safe drinking?
John Nabarro, London, UK
I think you might want to investigate Tesco's discounting of alcohol further. It is true that there are many discounted offers and this seems to be their sales strategy. But comparing like with like it seems that the 'ORIGINAL PRICE' shown is far higher than those displayed in other supermarkets, so they are not genuine bargains after all.
The whole thrust of the argument that alcohol needs to be more expensive though is WRONG. The very people who are causing the problems in underage and loud boozing are the very people who are NOT effected by price. They have large disposable incomes, without the obligations of mortgages, heating bills and all the other overheads most adults have.
Alcohol is FAR cheaper in France where they don't seem to have a problem. The UK laws are very strong on the sale and supply of alcohol to drunks and underage persons but the police are failing to use their powers. This government is however desperate for more tax revenues. I am stocking up !!!
David Nammory, Liverpool,
I was in France recently. The local supermarket was selling boxes with 24 bottles of Stella for under £5 equivalent. The boxes have a carrying handle and a pull out panel for easy access to the bottles, which were also screw cap for easy opening. They do not have the problems with drinking we have.
In the Sunday market was a man selling knives. Mostly pen knives
but also big jagged bladed "hunting knives". They do not have the problems with Knife crime we have.
It is a societal problem, not an access problem.
ken eglen, Kings Lynn, Uk
I am well able to control myself and just because less than 0.01% of the population die from alcohol related concerns a year, I really don't think this warrants more taking of our earnings because the government is pouring money in to implementing badly designed systems instead of actual health care and education of the people. If anybody dare fix prices because the nanny state is overspending I can promise people will quickly turn on the government and retailers. This will lose more labour voters than not saving northern rock would have done.
Alistair Kipling, Birmingham,
Lets get rid of one size fits all politics. Drinking is bad, increase the prices, 4x4 are bad ,increase the tax, low cost flights are bad , increase the tax, fuel consumption is environmental unfriendly, increase the tax with the knock on effect on prices. Basically if you are rich do what you want, just pay a little more If you are poor, we know what is best for you, minimum wage or a state pension linked to inflation figures that no sensible person could possible believe.
Tony Woods, London, UK
Why should those of us who drink responsibly be penalised because a few kids can't hold their drink?! MikeRight is indeed right, booze is cheaper & more readily available outside the UK. Why else have we seen a huge increase in people travelling to purchase alcohol & tobacco in countries such as Spain & France. The governments there do not have a problem with a so called "binge drinking" culture.
This is a British societal & cultural problem and not one that can be so easily cracked with a typical kneejerk reaction of using the twin sledgehammers of legislation & taxation this ridiculous government seems to favour as the solution to all of society's ills.
Drugs & alcohol in moderation are easily tolerated, it's when their consumption becomes excessive that problems arise both personally & in wider society. This debate should focus on people taking responsibility for their actions, not relying on the government to take it for them.
David, London,
The main issue is the drinking culture in the UK. As a foreigner living in the UK, I was quite astounded at how widespread and accepted heavy drinking is. What do we do almost every day after work? We hit the pub. And it is very rarely for one or two pints. Children grow up into this environment and simply carry it forward.
Gerhard, London,
Does anyone else detect a substantial tax hike on alcohol at the impending Darling/Brown Budget ? I suspect that the electorate will be told that the increases in alcohol duty are necessary to help fight binge-drinking....Hahaha !
Rather, it is an easy option for the government to hit everyone in the pocket and to tell us that it is all for our own good.
Binge-drinking is caused in part by the breakdown in Britain's society over the last decade and the ensuing collapse in values.
To coin a phrase, 'We're in the Jeremy Kyle generation'.
R.M., London, England
I'm sure the supermarkets would be delighted to have an excuse to collectively put their prices up - it won't do their profits any harm. If Tesco is so concerned about under-age drinking, does it support stricter financial penalties against retailers who supply under-18s with booze?
Alli, Stockton-on-Tees,
Tesco seeking publicity, current laws regarding underage drinking not being enforced, calls to increase tax on alcohol, calls to decrease tax on alcohol. Nothing changes. Next there'll be some wild claim about the Pope being a Catholic.
David Leslie, Perth, Scotland
This is the same Tesco who are being investigated for fixing the prices of milk, butter and cheese. That is against competition law and is far more regressive than higher alcohol prices. It is as if supermarkets have been imposing their own tax upon these goods.
"Commerical suicide"? Seriously? It is not as if Tesco are struggling to make a profit.
Supermarkets have been responsible for the closure of countless small shops. Now they are leading to the closure of our pubs (56 a week according to CAMRA).
They should not be allowed to sell alcohol.
Craig Neese, Lincoln, UK
the price of alcohol is already far to high being almost completely tax.
pat, leeds, uk
Cheap alcohol has little to do with bad behaviour in our society and Tesco are playing into the hands of the government by collaborating. Just watch, more legislation on the way which will employ more public servants to police alcohol prices etc. Add these people to the masses of other unnecessesary public servants and they'll have even more voters for the next election. There's only one thing which this government cares about and it isn't the effect of cheap booze. It's remaining in power and they'll use any means to do it!
Paul Savage, Lambourn, Berkshire
Well said Mike Wright from London. Tesco already sell booze cheaper than any other supermarket, so all they are trying to do is get the Government to increase the price so that it cuts the profits of its competitors. SHAME ON YOU TESCO YOUR DIRTY TRICKS OPERATIONS ARE GRADUALLY COMING TO LIGHT!!
Peter LEWIN, Haslingden, Lancashire
I find it strange that a can of lager is now cheaper than a bottle of water in a supermarket.
Bry Barnes, Somerset, Uk
It's the same old story - penalise the law abiding to avoid takling the lawlessness. It is not the cost of alcohol that is the problem, it is a minority of people drinking to excess. It is not usually the speed limit that is the problem, it is those people who think they can drive at whatever speed they wish. Let us tackle those who break the law and reward those who keep it; let us not bring the law into disrepute.
Ken, Oxford, England
increasing the price of alcohol isn't the solution here. the young aren't going to be put off drinking by an extra 20p a can on beer. they will just ask there parents for more poket money, thats not really rocket science is it. The only thing this will do is increase the size of government coffers. and will hurt the sensible drinkers in the process, in a time of ever increasing inflation, oil and fuel prices etc.
keith, chester, uk
I suggest a key reason for the increase in alcoholic drinking is its easier availability. Off-licencing should be restricted to 'pure-play' off-licences, as it was twenty-odd years ago (it was the Thatcher government that changed the rules). If you go into Sainsbury's at Marble Arch, you have to queue for checkout alongside a row of goods - the last two metres of shelf space is filled with - - ???? - - alcohol. It couldn't be more 'in your face'.
Barry Faith, Wimborne, Uk / Dorset
Hmm! exactly what role does Miss Neville Rolfe have in Tesco? There are days when she seems to be the entire board. Am I being cynical when I suggest that she is merely being the front person for something thought of as a soft womans issue? Come on boys lets here your point of view.
Jane Knight, Didcot, Oxon
What rubbish about cheap booze! The USA and Europe do not have the yobbish drunks we have, and their booze is much cheaper. Have to look elsewhere for reasons - like parental and government irresponsibility.
MikeRight, london,
The major prolem is underage drininking, not "cheap booze".
The solution is to apply the law. If *any* shop is caught selling to underage people, it shoud be fined 10% of turnover (not £100) and stripped of it's alchol license.
No excuses - "She was wearing makeup" etc.
Steven, oldham,
I work for a small award winning brewery producing award winning products and run several pubs All of that is done despite ever increasing costs and being the easy target for the government to raise taxes.
I would find it very interesting to see how full the letters pages of the Times would be if other industry sectors had to cope with the amount of red tape and taxes the brewing sector has to face.
Historically ale has been the drink of the people and historically we have always had issues with consumption of drink from the time of the Industrial revolution in the early 1700's. Then the ruling elite wanted a workforce ready to do 14+ hours a day for little money, so via their funding of the Church and MP's, the message went out about the evils of drink.
Seems nothing has changed. Beer bad, spirits and wine good, as they were the drink of the bosses.
For the price of a real ale pint you can buy a bottle of wine or nearly a bottle of vodka in a supermarket. Enough said.
R Oakland, York,
If you increase the tax and make it more expensive more people will turn to petty crime to fund their habit, it's not rocket science to work it out is it... if they are drunk they are not beating up old ladies for their pension money are they? make it cheaper they will die off sooner as well no liver... so what darwinism in action, survival of the less tupid
Barry, Chesham, Uk
This is not hypocrisy. Supermarkets aren't allowed to agree to charge more for alcohol since this braches competition laws. All Tesco is doing is to ask for legislation such that they can effectively do this for alcohol (or at least not discount it). It's about having a level playing field for once. Consumers cannot have it both ways, and neither can the government.
Rob, London,