Cut-price alcohol in binge spotlight

I'm just distraught that our kids are affected by this, because we adults are influencing this behaviour.Roy Ramsey, Blenheim Drug Arm chairman

A Blenheim social worker has accused supermarkets of using cut-price alcohol to lure shoppers and is urging them to have a social conscience.

Blenheim Drug Arm chairman Roy Ramsey said the practice of using alcohol as a loss leader, where it is sold at low or below cost prices to attract customers, was "abhorrent", as the cheap prices encouraged binge drinking and meant supermarket food shoppers were subsidising losses from beer and wine sales.

Support for Mr Ramsey's call has come from the Hospitality Association of New Zealand (Hanz) and the Alcohol Advisory Council of New Zealand (Alac), who want legislation to prevent the practice.

Alan Malcolmson, general manager of retail operations for Foodstuffs, said it "generally did not" sell beer and wine for less than wholesale prices. However, the cheap prices were necessary in the face of stiff competition, he said."The margins are slim and it depends on where we need to be competitive. It's not every day that we have to sell for less than we buy," said Mr Malcolmson.

Foodstuffs owns New World, Pak'nSave and Four Square supermarkets,

In Invercargill, where alcohol is not sold in super-markets, binge drinking is an issue just as it is in any other New Zealand town, says the Salvation Army and the Invercargill Licensing Trust.

Mr Ramsey and Hanz chief executive Bruce Robertson both said supermarkets had promised not to use alcohol as loss leaders when the amendment to the Sale of Liquor Act 1989 allowing beer sales in supermarkets was discussed during the 1999 parliamentary select committee hearings.

Mr Malcolmson said he did not know of such a commitment.

Mr Ramsey said Marlborough's alcohol-related problems were evident in comments by Marlborough police area commander inspector Steve Caldwell, who said 80 percent of all crime was attributed to alcohol.

"Is it responsible to keep pushing your business on the demise of society?" asked Mr Ramsey.

"I'm just distraught that our kids are affected by this, because we adults are influencing this behaviour."

Mr Malcolmson said the industry was "extremely competitive" and Foodstuffs had to follow suit.

Mr Ramsay said he recog-nised that liquor stores also sold alcohol at discounted prices, but the difference was they did not sell food and they had not ignored commitments to refrain from using beer and wine as loss leaders.

Mr Robertson said people often bought large quantities of alcohol at cheap prices from off-licensed providers such as supermarkets and drank it to "get smashed". Frequently they then went to the pubs, bars and clubs in intoxicated states and caused problems for staff and other patrons.

He acknowledged the hospitality industry had an interest in people drinking at on-licensed premises rather than drinking alcohol bought from off-licenses but said it was important they took some community responsibility.

"I want the supermarkets to sit back and actually think about their alcohol prices. I know they are commercial but for them to have a social conscience as well would be great," said Mr Robertson.

Mr Malcolmson said Food-stuffs was "definitely socially aware" and cited its supervisory intervention on all checkouts for all alcohol purchases, checking for underage buyers.

ALAC chief executive Gerard Vaughan said legislation was needed to prevent supermarkets from using alcohol as a loss leader.

"We are really concerned about the cheap availability of alcohol in supermarkets as we know that, for some population groups, there is a link between the price of alcohol and excess consumption."

He said it was well-known New Zealand had a binge drinking culture.

"New Zealanders tend to drink until it's all gone and price is linked with that."

Mr Ramsey said he was challenging society: "I am saying these things (problems) will happen so are we going to bury our heads in the sand about it?"

Alcohol is not sold in Invercargill supermarkets because the Invercargill Licensing Trust holds the right to off-premises liquor sales under the Sale of Liquor Act.

Its human resources manager, Greg McElhinney, said he thought this made no difference to instances of binge drinking.

The Salvation Army's Invercargill director of supportive accommodation services, Simon Stevens, said he thought the city's binge drinking problem was "no better and no worse" than any other New Zealand town.

Progressive Enterprises, which owns Foodtown, Woolworths, Countdown, Fresh Choice and SuperValue supermarkets, said in a statement it aimed to balance its role of providing customers with a competitive offer in all categories with its responsibility to uphold laws governing the responsible sale of alcohol.

Marlborough Express