Tesco caught out on cheap alcohol

By John Harrington

- Last updated on GMT

Related tags: Tesco

Tesco: 24 cans of Stella for £10
Tesco: 24 cans of Stella for £10
Tesco is the only supermarket to sell alcohol below duty plus VAT, the definition of cost-price favoured by many in the off-trade — including the...

Tesco is the only supermarket to sell alcohol below duty plus VAT, the definition of cost-price favoured by many in the off-trade — including the retail giant itself.

That's according to a survey of promotions on Friday 21 May, the day after Tesco chief Terry Leahy backed the new Government's call for a ban on below-cost sales.

The survey was carried out by Assosia for Morning Advertiser's​ sister publication The Grocer​.

It found that Tesco was selling below cost when it sold 24 cans of Stella Artois for £10. If the cost of duty and VAT are taken away, it works out at a loss of 6p per litre.

Using the same definition, Tesco also sold Fosters for 11p per litre above cost price, Carlsberg for 15p above and Carling for 17p above.

The next cheapest deal was from Asda, which sold 20 cans of Carling for £9, or 18p per lire after tax.

Writing in the Telegraph​ last month, Leahy said: "We welcome the new Government's commitment to act on below-cost selling of alcohol and today I pledge that we will support Government-led action to make this happen across the UK.

"We will also support any future discussions on a minimum price for alcohol."

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