Six out of seven major supermarkets sell alcohol below cost, with 220m litres of alcohol sold under cost price in one year.
Lord Taylor of Holbeach, Under-Secretary of State for the Home Office, revealed the news to House of Lords earlier this week. The figures date from 2008.
It comes as the Government looks to ban the sale of alcohol below the combined cost of duty and VAT as an alternative to minimum pricing.
Association of Licensed Multiple Retailers strategic affairs director Kate Nicholls said: “The Government’s admission of the scale of below cost selling and supermarket irresponsibility when it comes to pricing clearly demonstrates the need for swift, tough and effective action not only to tackle pocket money prices but to impose the same regulation of promotional activity in the off-trade as pubs, clubs and bars currently face.”
She highlighted figures from the Smoking, Drinking and Drug Use Among Young People Survey, released this week, which shows that a quarter of underage drinkers bought alcohol from a shop, supermarket or off-licence. This compares to 4% of young people who had drunk in on-licensed premises.
Nicholls said: “With more than 70% of alcohol now consumed away from the safe, supervised environment of a pub or bar - and the latest research showing two thirds of consumers citing price as the main factor behind that - the time for government action is now. We cannot go on allowing a tide of cheap alcohol to undermine the good work responsible pub and bar operators are doing to deliver the Government’s public health and public order agenda.”
