Reaction to Tesco's move on alcohol prices
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Andy Bond, CEO of ASDA
"We are already talking to government about what we can do now as an industry and a company to tackle this issue. We will be announcing a package of measures on Monday that focus on restricting access to alcohol in our stores.
"We believe our proposals can be easily adopted by the entire retail industry immediately, and will go a long way towards tackling the issue [of underage drinking and the effects that alcohol related crime and anti-social behaviour], without the need for further legislation or delay."
John Grogan, Labour MP for Selby, and chair of the All-Party Parliamentary Beer Group
"Clearly Tesco is buckling under the pressure, and that has to be welcomed. But there's nothing to stop it taking a stand unilaterally and I'm sure its major competitors would follow suit if it did.
"Now we will be calling for a response from government. In France there is a law which outlaws below-cost selling across the board - why can't we do that here?
"I believe this has been co-ordinated at the very highest level between Number 10 and Tesco. It won't have been a surprise to Number 10.
"I would expect a government response in due course."
Greg Mulholland, MP for Leeds North West and Member of All Party Parliamentary Beer Group
"It is very welcome to hear that the country's biggest supermarket chain is willing to support action on this issue.
"It shows that the sale of cut-price alcohol at rock bottom prices has become a real concern, fuelling binge-drinking and raising serious health fears.
"But the sale of cut-price booze is only part of the problem - we need a return to traditional British community pub culture, where drinkers are encouraged to enjoy alcohol responsibly."
The Wine & Spirit Trade Association
"Tesco is right to say that competition law prevents an industry-wide discussion on the price and promotion of alcohol; we've been saying this to government for some time.
"Our view is that price and promotion is not the real issue in terms of alcohol misuse - surely countries like France and Spain with much cheaper alcohol would have similar problems if it was. But it makes sense to at least have a discussion about these issues.
"If that's to happen the government has to address the competition law barrier."
Paul Smith, executive director of Noctis (formerly the Bar Entertainment & Dance Association)
"Tesco is to be commended for this. We hope that all the rest of the big supermarkets follow suit. We recognise that tackling pricing is a very thorny subject which requires some careful handling not to fall foul of strict competition legislation, but we in the on-trade have worked over recent years very hard to encourage more sensible pricing - so it is heartening to see the supermarkets join us.
"Adoption of a policy on responsible promotions, following the lead of pub, club and bar operators, would be a very positive next step."
Jon Collins, executive chair of Noctis
"The establishment of sensible pricing is crucial for our members, since we are finding increasing numbers of individuals trying to get into venues having consumed too much alcohol much of which has been bought in the off-trade.
"The rise of front-loading of cheap (largely supermarket) bought alcohol is a worrying trend and is something which could stall much of the good work that has been done over recent years with regard to instilling a sensible drinking culture in this country".
Nick Bish, chief executive of the Association of Licensed Multiple Retailers
"Tesco has finally woken up, smelt the coffee and realised that it is partly to blame for the nation's collective hangover. It claims to recognise that it has a role to play in addressing the problem of anti-social drinking, but has taken no steps to do so. It is so addicted to below-cost selling that it appears unwilling or unable to moderate its own behaviour and instead needs legislation.
"Every day, pubs and bars have to make the commercial and moral decision not to compete on price and to resist irresponsible promotions. It beggars belief to suggest that the UK's biggest off-licence retailer is unable to do the same. There is absolutely nothing to stop Tesco from unilaterally taking action to ban below cost selling in its outlets. Far from being 'commercial suicide', it would actually make their alcohol sales more competitive - and does anyone seriously believe that it would make people stop shopping at Tesco?
"Alcohol misuse is a serious problem and it needs a grown-up response. As Tesco says, 'every little helps', and a clear signal from the market leader that below-cost selling is unacceptable would do just that."
And what Tesco has to say on the issue…Lucy Neville-Rolfe, executive director for corporate and legal affairs
"Binge drinking and other alcohol-related social problems are a serious concern to us all, but it is far too simplistic to apportion responsibility for this on price alone. If low-cost alcohol were the only factor then countries such as France and Spain, where prices are much lower than in the UK, would have similar problems and countries like Finland, where alcohol is expensive and its availability restricted, would not.
"However, supermarkets do sell a lot of alcohol and we accept that we have a role to play in addressing the problem of anti-social drinking. We need to better understand the impact of price and be mindful of the fact that the vast majority of people consume alcohol responsibly and shouldn't be penalised for the actions of less responsible drinkers.
"To get this understanding and move forward all shops that sell alcohol need to act together - and this is where we are being held back by the law."
"Competition law prevents businesses discussing anything to do with price with each other and imposes severe penalties on anyone who breaches it. The current dispute over milk highlights how even independent decisions to help address a wider societal problem can be misconstrued and result in responsible businesses being wrongly accused of price fixing.
"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. Such proposals would have to apply to all retailers of alcohol otherwise they would be ineffective as those looking for cheap alcohol would simply shop with lower priced operators not covered by the legislation, undermining our business and achieving nothing.
"If Ministers act we pledge our support in helping to develop proposals and make the legislation work."
