Average prices of drinks sold in major supermarkets are up to four times greater
than "cost price" as defined by the Government, a new survey shows.
It is more proof that ministers' plans to ban sales of alcohol below "duty plus VAT" would have little effect on supermarket deals.
The survey, from brandview.co.uk, reported in the MA's sister publication The Grocer, examined average prices at Asda, Morrisons, Ocado, Sainsbury's, Tesco and Waitrose and found:
• 2 litre Strongbow cost an average of £3.18; duty plus VAT would be 80p
• 4 x 440ml Stella Artois 5% cost an average of £4.34; duty plus VAT would be £1.83
• 1 litre Smirnoff cost an average of £18.66; duty plus VAT would be £10.71
• 75cl of Jacob's Creek cost an average of £6.24; duty plus VAT would be £2.03.
The prices were correct as of 20 January.
In Parliament, MP Keith Vaz urged Home Secretary Theresa May to make the below-cost ban a "genuine exercise, not just box-ticking". May said the ban would mean 7,000 fewer alcohol-related incidents and 1,000 fewer hospital admissions.