24 May 2010
By Emily Ryans
Last week the Government
published their full coalition programme for Government. This programme included a number of policies that will affect pubs and consumers, including a commitment to ban the sale of alcohol at below cost price.
Since this announcement, there has been a clamour of support for an end to below-cost selling or the introduction of minimum pricing, from all corners of the sector.
Supermarkets such as Tesco, which sparked controversy with its world cup price promotions on beer, have announced that they support a ban on alcohol sold below cost price. Writing in the Daily Telegraph, Tesco's Chief Executive said that he would "
support any future discussions on a minimum price for alcohol".
Tesco is joined by brewer Greene King and pub company Mitchells and Butler, who have both urged the Government to consider minimum pricing. Trade association the British Beer and Pub Association (BBPA) have also welcomed moves to end the below-cost selling of alcohol.
CAMRA has long been in support of measures to prevent irresponsible supermarket price promotions (and we called for Government action on this in our
Beer Drinkers and Pub Goers Charter). The practice of supermarkets selling alcohol as a loss-leader has created a huge disparity between the price of alcohol in the on-trade and the off-trade. Prices in supermarkets can be as much as six times cheaper than prices in pubs, which is driving a shift in alcohol consumption away from pubs and towards drinking at home or on the streets. Pubs cannot (and should not) compete with the low prices and price promotions offered by supermarkets.
If a minimum price is introduced, we will be calling for it to be set at a level that does not penalise the responsible, sensible majority of ordinary drinkers.
We will therefore be seeking a Government commitment that they will act quickly on their pledge to ban the sale of alcohol below cost price, and we hope that legislation for this is announced in the upcoming Queen's Speech.