SNP threatens supermarkets with minimum drink prices

Justice Secretary Kenny MacAskill has declared war on the UK's leading supermarkets, warning he will impose minimum prices on alcohol if stores continue to offer cut-price deals.

In an outspoken attack on leading stores such as Asda, Tesco and Sainsbury's, MacAskill accused them of "playing games" and seeking to "evade their responsibilities".

MacAskill is putting the finishing touches to a consultation paper which will recommend banning two-for-one deals and buy-one-get-one-free offers on alcohol.

But Scotland on Sunday can reveal the industry has warned the minister that if the bans are imposed, the supermarkets and drink suppliers will respond by simply lowering their prices for all drink so that consumers are still offered discounts.

MacAskill has responded by saying he would look at introducing minimum prices for alcohol.

Campaigners against cheap drink have suggested the minimum price should be set at 50p for a unit of alcohol, meaning a "bargain" bottle of red wine currently priced at £3 would have to sell for at least £5.

Last week, ministers said they would consider increasing the age limit on alcohol sales from 18 to 21 in supermarkets and off-licences.

Industry insiders predict the move to ban cheap drink deals will fail. They say suppliers will continue to have promotional budgets and will simply find new ways of spending them. One possibility, according to insiders, is that suppliers and supermarkets will cut alcohol prices across the board.

The suggestion has infuriated MacAskill. He said: "Just last month supermarkets were talking the talk about the need to tackle cheap alcohol. I welcomed that, but talk is cheap – as cheap as the bucket loads of drink they are selling to get folk into their shops. This month it would appear that we are back to playing games."

He added: "They should know that we are intent on tackling irresponsible promotion and pricing. If there are measures that seek to evade those responsibilities we will not hesitate to use all available powers to ensure that they are addressed."

He went on: "Nothing is ruled out of this strategy, and the price of alcohol is one of a number of issues that is being considered."

Alcohol campaigners say MacAskill has the power under recent licensing laws to create new definitions of irresponsible alcohol promotions. They say, for example, that alcohol sold at below cost price could be defined as irresponsible, and thereby be banned.

The British Liver Trust has backed calls for a minimum price for alcohol and suggested 50p per unit as a guide for a minimum price for drink.

Under such a scheme, many of the deals being offered in supermarkets in Scotland yesterday would be illegal.

A pack of 20 bottles of Stella Artois, with a strength of 5% alcohol, was priced at £8.98 in Sainsbury's in Gorgie, Edinburgh. Under the Liver Trust's pricing scheme it would have to cost a minimum of £14.20.

A 750ml bottle of Granules Tesoro Garnacha Rioja, which was yesterday priced at £3.20 from Tesco online, would have a minimum price of £5.05.

A two-litre bottle of White Lightning Cider would cost £7.50 instead of the £3.08 currently charged by Asda.

Supermarket groups and retailers last night warned against Draconian measures.

A spokesman for Asda said: "We are not convinced that raising the price of alcohol is the correct solution to the problem. It is a blunt instrument that raises the price to the millions of consumers who drink responsibly. The key issue is changing our culture and encouraging awareness of sensible drinking, a process we are committed to working with Government on as part of its alcohol strategy."

Fiona Moriarty of the Scottish Retail Consortium added: "Scotland has got a difficult and complex relationship with alcohol, which is not going to be solved by dealing with price and promotions alone. It has to look
at early intervention and awareness-raising."

The stores also point to new measures they have put in place to prevent irresponsible drinking, such as proof-of-age schemes for anyone who looks under 25, the removal of controversial drinks and a commitment to prosecute under-18s who try to buy drink.

But alcohol awareness groups say that raising prices is the only way to cut down on excessive drinking.

The Alcohol Health Alliance claim that by increasing the cost of alcohol by 10% the number of alcohol-related deaths could be cut by anywhere between 10% and 30%.

• Shops are defying government attempts to clamp down on cheap alcohol by pressurising suppliers to absorb the extra costs from tax rises, it was claimed last night. A drinks industry document reportedly calls on brewers and distillers not to increase prices to retailers so that they can continue selling drink cheaply.

Scotland on Sunday