ACS

21 May 2010

Tesco Chief Executive, Terry Leahy reiterated the company position minimum pricing on alcohol on an article in today’s Daily Telegraph. His comments come after the coalition Government confirmed plans to ban below cost selling in England and Wales.

The chain indicates its support for restrictions for below cost selling and its willingness to contemplate measures that stretch further, including minimum pricing. Tesco, along with supermarket competitors, has been criticised for its alcohol pricing strategy, especially promotions linked to bank holidays and events like the World Cup.

In Scotland, the Holyrood parliament is currently considering legislation that would introduce a minimum price for alcohol units, with a 40p per unit often being suggested. Studies have cast doubt on whether a minimum price will actually change drinking behaviour in the target groups, and have suggested responsible consumers will suffer from higher prices.

ACS Chief Executive James Lowman said: “The current evidence is inconclusive about how minimum pricing tackles alcohol harm in the key problem groups, and the Government needs to be absolutely sure that this measure would be effective. However, convenience retailers have little to fear from a properly set minimum price as it is the supermarkets who are driving down alcohol prices, in some cases to below cost price, which causes huge competitive problems for local shops.”

“If minimum pricing is the route the Government wants to go down, then ACS has made it clear that we are very happy to take part in discussions to find the right solutions to tackle alcohol harm.”

ACS is a key stakeholder in policy discussions on tackling alcohol related harm, and has echoed Tesco’s willingness to discuss the benefits and impacts of Government imposed interventions in alcohol pricing.