Thursday 20 May 2010
An end to cheap booze?
The new government is planning to ban the sale of alcohol below cost price. Now it must be said that stocking up on slabs of cheap lager is not my thing but this is serious! I was able to stock up on a load of Brewdog beers dirt cheap when Sainsbury's were selling them off after their beer competition and delights like this could be ended. Any moves to increase the price of any alcoholic drink should be opposed - an attack on one is an attack on all!
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As I've said before, the amount of below-cost selling by supermarkets is much exaggerated. I'm not saying they never do it, but most of those "2 packs for £16" offers are down to extracting eye-watering discounts from brewers. That's why Molson-Coors (or whoever) claim to be only making 1p a pint profit in the UK.
ReplyDeleteAnd it will be bad news indeed if it prevents retailers from selling off surplus stock at a loss - look forward to most small brewers being expected to supply on a sale or return basis.
I think this probably deserves a post on my own blog in the near future...
Good point, a lot of those promotions are paid for by the brewers as part of the deal for being listed in the supermarket.
ReplyDeleteAnd you can't pass a law saying manufacturers can never sell at a loss, otherwise you would have discovered the Holy Grail of economics.
ReplyDeleteEd. Just relax, who cares? Just get mashing! (Now, I would get exercised if they fiddle with that!)
ReplyDeleteWhat Mudgie says. Very little of my lovely lout is loss led. It's a myth repeated until it becomes true.
ReplyDeleteThe real losers will be small micro craft brewers attempting large supply contracts to the likes of Tesco.
CAMRA will get what it asked for.