Supermarket price wars under attack
The big supermarkets found themselves under attack again this week as a new stores price war saw the cost of lager cut to just 28p a pint.
The rock-bottom price meant lager was being sold in three of the big chains for less than bottled water. One of the stores, Asda, openly admitted it had been forced to lower prices to compete with its main rivals. The retailers found themselves on the end of a concerted attack by health groups, MPs and drinks trade leaders as news of the price-cutting broke.
Research carried out by The Mail On Sunday revealed the Smart Price lager was retailing in Asda stores for just 22p per 440ml can, matching prices offered by Tesco and Sainsbury's. This equates to 50p per litre or the equivalent of 28p per pint. Bottles of own-brand mineral water in the same stores currently sell at between 56p and 92p a litre.
In a further development, Asda has cleared shelves of single cans and replaced them with multi-packs, forcing customers to buy in bulk.
The give-away prices were condemned by Federation of Licensed Victuallers Associations chief executive Tony Payne. "How cheap does alcohol need to go before something is done?
"Things have now reached a ridiculous state of affairs and it's not even Christmas yet," he warned. "People are not just buying drink from these stores as part of the weekly shop - you can see them wheeling away caseloads of the stuff.
"Supermarkets have to understand what responsible retailing is."
Asda has defended its position by saying it was the price leader and it could not afford to be exposed by its rivals.
A spokesperson told The Mail On Sunday: "It is a competitive market and if someone is offering something at a ridiculous price we have to match it." Both Tesco and Sainsbury said the bulk of customers bought drink from stores as part of their weekly family grocery shop.
pub sector is leading the way
The British Beer & Pub Association said the industry had been raising the issue with the Government for more than two years. "We would like to see supermarkets recognise the potential damage they are causing to the alcohol category, and end irresponsible promotions such as loss leading. The pub sector has tackled this issue head on by introducing its own rigorous code on promotion. We would like to see the supermarkets play their part," said director of communications Mark Hastings.
