The Publican calls for meeting with supermarket chiefs

By Matt Eley Matt

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The Publican has gone on the front foot in the battle against loss-leading supermarket deals by requesting meetings with the big four retailers. A...

The Publican ​has gone on the front foot in the battle against loss-leading supermarket deals by requesting meetings with the big four retailers.

A year on from Tesco urging government intervention on alcohol pricing, the gap between supermarket and on-trade prices remains huge - and continues to spark resentment across the pub trade.

And to mark the first anniversary of Tesco's, as yet unheeded call, The Publican​, has written to the chiefs of the UK's four biggest supermarkets - Tesco, Sainsbury's, ASDA and Morrisons - in a bid to move the issue forward.

Latest figures from the Office for National Statistics show that last year beer prices in the on-trade rose by 4.9 per cent compared to just 0.6 per cent in the off-trade.

And despite Tesco's statement, and plans announced by others supermarkets to address the issues, the bargain basement deals have remained.

Recent deals include:

  • Tesco​ - two crates for £12 on various brands including Foster's, John Smith's and Magners
  • Sainsbury's​ - Gordon's Gin (70cl) and Smirnoff Red (70cl) both £11; 10 440ml cans of Carling for £6
  • Asda​ - three bottles of wine for £10
  • Morrisons​ - 18 bottles of Becks for £8

Licensees regularly point to loss-leading sales as a cause of pre-loading and trouble in their venues later at night.

The Publican​ is also campaigning for a minimum price of 50p per unit of alcohol to bring off-trade prices closer to those in pubs.

And trade leaders, who back the campaign, have been quick to put pressure on supermarkets to address below-cost selling.

John Grogan MP, chairman of the All-Party Parliamentary Beer Group, said he expects the issue to be high on the agenda at a pub summit meeting between MPs and ministers next month.

He said: "It will be one of the issues MPs will want to discuss. Not much has changed in the last year and if anything the differential between on and off-trade prices has got wider."

Iain Loe, the Campaign for Real Ale's research and information manager, said: "Below-cost selling by supermarkets shows no signs of abating whilst the price of beer in pubs continues to increase because of higher excise duty rises and price increases imposed in the main by the country's national brewers.

"The implementation of a minimum alcohol pricing policy is certainly overdue."

Paul Smith, executive director of late-night operator trade group Noctis, added: "It is not sufficient for the supermarkets to insist that their duty of care consists solely of checking customer's IDs when the issue requires a much greater level of corporate commitment - starting with the outlawing of below-cost alcohol selling."

Make it the Minimum

One of the issues The Publican is keen to discuss with supermarkets is minimum pricing.

We are calling on the government lay the groundwork for a minimum price of 50p per unit of alcohol. This will end cheap booze promotions and bring off-trade prices closer to the cost of alcohol in the pub - the home of responsible drinking.

Only this week Lib Dem shadow culture secretary Don Foster MP pointed to research that indicates a minimum price of 40p per unit would see hospital admissions drop by 40,000 a year.

Hundreds of licensees, as well as trade groups including CAMRA, the Federation of Licensed Victuallers Associations and the Society of Independent Brewers, have backed Make it the Minimum.

Add you support by signing our online petition​ or for more information visit www.thepublican.com/makeittheminimum

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