Asda drink price move 'does not go far enough'

Published on Thursday 22 July 2010 15:32

MINIMUM pricing for alcohol is still vital to tackle Scotland's "booze culture", health campaigners claimed last night, after Asda became the first supermarket to ban super-discounted drink sales.

The supermarket giant promised that it would set a floor price for alcohol, with no drinks sold at below the cost of duty on the product plus VAT.

The move by Asda means that a pack of 20 Carling beers will not be sold for below 7.17, while a litre bottle of Smirnoff Vodka will never be cheaper than 10.49.

However, medical bosses, the Scottish Government and Holyrood politicians claimed that the move would still means drinks being sold at "ridiculously cheap" prices.

The row comes as the SNP government attempts to win support for its plan to impose minimum prices for alcohol, as part of a raft of measures to tackle Scotland's binge-drinking culture.

Meanwhile, other supermarket giants, including Sainsbury's, Morrisons and Tesco, also said they were against selling alcohol as a loss leader to attract customers into their stores.

The supermarket chains, including Asda, said they had not discussed pricing policy for cheap alcohol among themselves. However, only Tesco has publicly backed the minimum price plan, and has said that the whole retail industry should be involved.

The British Medical Association Scotland said that introducing minimum prices would "save lives" after Asda chief executive Andy Clarke wrote to Home Secretary Theresa May promising to end below-cost-price alcohol deals.

A BMA spokeswoman described the Asda proposal as a "smokescreen" to escape tighter restrictions on the industry, such as minimum prices.

She said: "While any action to reduce alcohol consumption is welcomed, the BMA does not believe that banning the sale of alcohol below the cost of duty and VAT will make any real difference in tackling Scotland's problems with alcohol.

"Under this scheme, many drinks, such as supermarket-brand vodka and ciders, could continue to be sold at ridiculously cheap prices, and in some circumstances could be even cheaper than they are now.

"This proposal by Asda could be seen as no more than a smokescreen to avoid regulation.

"Evidence clearly shows that introducing a minimum price for alcohol will reduce overall consumption and save lives - but that minimum price must be set at a rate higher than would be achieved by a ban on sales below the cost of duty and VAT.

"Supermarkets have a duty to behave responsibly when selling products like alcohol, which is no ordinary commodity.

"They have failed to do this themselves, so now it is the time for government to step in."

However, Sainsbury's hit out at minimum pricing, which it claimed would not prevent binge drinking.

A spokesman said: "We believe that introducing a minimum price for alcohol would unfairly penalise our shoppers, the vast majority of whom buy alcohol as part of their weekly shop and drink responsibly in their own homes.

"Furthermore, there is no reliable evidence that minimum pricing would tackle the problem of binge drinking."

Sainsbury's went on to say that it did not sell alcohol below cost price.

A spokesman said: "We do not sell alcohol below duty plus VAT, which is the most commonly used term to define ‘below cost'."

Meanwhile, SNP MSP Michael Matheson claimed that the Asda plan was a PR exercise. He said: "Asda are taking a step in the right direction, but it appears to be more for publicity and political purposes than genuine public health.

"Paying taxes on alcohol should be the norm and by admitting that they are not currently selling alcohol at that level, Asda are at least accepting that low prices are part of the problem with alcohol. Unfortunately, this move simply does not go far enough.

"Setting a floor price of duty plus VAT will have a limited, if any, effect on consumption of alcohol - as these prices show.

"If we are serious about saving lives, cutting crime, reducing absence from work and boosting Scotland's health and wellbeing, we need serious action from all those involved in alcohol sales - not half-hearted PR gestures."

But Asda claimed the steps it had taken would create a "new way of selling alcohol".

A spokesman from the supermarket said: "We always believe actions speak louder than words, and the time has come for us to act. So, from today, at Asda we will not sell alcohol below the cost of duty plus VAT.

"It is a small, but important first step towards creating a new way of selling alcohol in the UK. at Asda.

"We also support a comprehensive review of the duty system to establish whether there should be a much closer link between taxation and alcohol content.

"At Asda, we stand ready to play a leading role, working alongside the government and the drinks industry to tackle alcohol misuse in the UK."

Asda said it was balancing the new alcohol prices with cuts to the cost of essentials, beginning with milk. The price of four pints of milk in English, Welsh and Scottish stores has dropped from 1.53 to 1.25.

The Morrisons chain backed the Asda view and called for selling alcohol as a loss leader to be outlawed. Director of corporate affairs Richard Taylor said, "Morrisons welcomes the news that Asda has now joined us in our view that alcohol should not be sold below the rate of duty and VAT.

"We believe that this mechanism, if enshrined in law, would provide an immediate and fair approach to stem the misuse of alcohol and provide a nationwide solution.

"If the government thinks price is a way to affect demand, it can do so by raising duty knowing that it will apply across the UK."

The Scottish Government spokeswoman claimed that Asda's plans did not go far enough and would still mean cheap alcohol being sold.

A government spokesman added: "We welcome the fact that retailers recognise the impact cheap alcohol has.

"Asda's proposals may be a step in the right direction, but they fall far short of what is necessary to tackle the scale of Scotland's alcohol problem.

"They would have little impact on reducing consumption and harm and would still allow drink to be sold dirt-cheap. In contrast research shows minimum pricing could save lives and reduce crime."

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