Supermarkets reject claim they are "destroying" pubs

Three of the UK's leading supermarket chains have rejected the idea that off-trade deals on alcohol are "destroying the traditional pub".

Representatives from Asda, Sainsbury's and Waitrose all defended their position while giving evidence to MPs on the Health Select committee in Parliament yesterday.

Paul Kelly, corporate director at Asda, said pubs' "cost of doing business" was a factor, adding: "Smoking has had a big impact, I think the drift away from town centres, the strength of Saturday night television - there are a whole series of factors, home entertainment in general."

He said the company's customers regarded their home as "a much safer, more friendly, more relaxed environment."

"I don't think you can say it's all the fault of supermarkets, there are a lot more complex factors going on underneath that," he added.

Nick Grant, head of legal services at Sainsbury's, told MPs pubs were a "very different business model" to supermarkets.

And Giles Fisher, head of alcohol buying at Waitrose, said the downturn affecting pubs was part of a "wider consumer trend" and not just about alcohol.

The MP-led inquiry is looking at the impact alcohol is having on health and the amount it costs the NHS.

At yesterday's evidence session Sainsbury's Grant also called for a tighter rules on pubs serving to customers who are already drunk.

He said current laws were not being properly enforced and if they were it would "save lives and police time".

The issue of minimum pricing was also covered in depth, but all the supermarkets opposed the idea.

Asda's Kelly told MPs the measure would be a "very blunt tool".

"You're taxing responsible, hard-working families to address the issues of a small part of the population," he said. "It is a stealth tax. It doesn't find its way into the Treasury but into the pockets of the drinks industry."

He added: "Minimum price is not the silver bullet that it has often been made out to be."

Kevin Barron MP, chairman of the Health committee, said he could not enter a supermarket in his constituency without "tripping over" drinks promotions such as "three for two" offers.

But Grant said alcohol deals were popular with customers and were a "product of a fiercely competitive market".

He said education, instead of price, was the best way to change consumer behaviour.

The supermarkets also claimed that they rarely sell alcohol at below-cost.

But in response to the session, Alcohol Concern chief executive Don Shenker hit out at the supermarkets.

"It can never be right for supermarkets to sell a product which causes so much harm to our society at a loss," he said.

"Both ASDA and Sainsbury's are currently offering cider as low as 15p per unit which we know is popular with both underage and heavy drinkers.

"There's no longer any doubt - the heavy marketing and promotion of alcohol, combined with low prices - are encouraging people to drink at a level our health services are struggling to cope with."

• The Publican is runing the Make it the Minimum ​ campaign which is pushing for a mininum price of 50p per unit to stop irresponsible off-trade deals and encourage people back into pubs.