UK government set to ban ‘below cost’ alcohol sales
More From: Curious Facts & Fun
Posted May 24th, 2010 by Matt Kane
The new UK coalition government has promised to tackle the problem of below cost selling of alcohol in England and Wales, a decision that has been backed by the leading supermarket chains. It is hoped to help reduce drink related anti-social behaviour without hindering those who drink responsibly.
As supermarkets are unable to price fix, they have been forced to seek legal changes through the government due to pressure from members of the public who are concerned about prices that are making alcohol too accessible at the lower end.
The big question is whether or not this will have a positive effect, as one might argue that it is not about price as it’s a cultural issue. But then surely cheap booze just fuels the problem, right?
Guy Woodward, editor of Decanter magazine, had this to say in the March edition about the below cost selling of wine:
‘Selling wines at a loss helps neither consumers nor the trade. The public gets in the habit of spending less on wine, thereby exposing themselves to lower quality, while producers are then pressured into producing ever cheaper wine, at lower quality, for less profit – a particularly vicious circle.’
Below cost selling of corn flakes or baked beans to get people through the door is one thing, but the below cost selling of a controlled substance such as alcohol is another. Perhaps the big retailers are starting to get the message. Whether it will curb alcohol abuse and anti-social behaviour remains to be seen, but I think it’s a positive step towards encouraging the responsible drinking of, hopefully, a better quality product.
Should our government be doing something similar?










June 8th, 2010 at 9:58 am
[...] industry concerns over a race to the bottom on price and quality, driven by economic meltdown and irresponsible selling, this was heart-warming stuff, both to consumers and independent retailers who champion quality and [...]
June 15th, 2010 at 5:04 am
[...] opportunity to choose small measures of beers, ciders, spirits and wine. As well as bringing in a ban on below-cost selling, the UK government might just be onto something good [...]