Pub Group CEO Hits Out at Supermarket Beer Pricing

Thu, 06 May 2010

The chief executive of pub owners Mitchells and Butler has called on the government to introduce new legislation stopping supermarkets from pricing pubs out of alcohol sales ahead of this summer’s World Cup . Adam Fowle claims that 70 per cent of all alcohol in Britain is bought in supermarkets, and with Tesco selling it’s own-brand lager for just 29p a pint, a boozy summer is predicted by many.

Tesco are not the only supermarket aiming to entice consumers, with other supermarkets such as Asda and Sainsburys joining Tesco in a ‘kamikaza’ price war that has seen crates of bitter, lager and cider available for just £9 over the Bank Holiday weekend.

The police, doctors and politicians have joined Mr Fowle in his criticism of the supermarkets pricing, insisting it promotes binge drinking and risks the health of boozy Brits. Wine and spirits have also been available cheaply, while the Daily Mail ran a comparative study claiming that beer is now cheaper than water in Britain’s supermarkets – though the study failed to take account for economies of scale.

Pubs are prevented from selling alcoholic drinks at below cost, though supermarkets are not constrained by the same rules.
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