Pubs face supermarket onslaught for Euro 2004

Pubs can expect a massive challenge for beer sales in the run-up to the Euro 2004 tournament next month, as supermarkets compete for sales.

Sainsbury's has announced a drinks promotion that will see 20 per cent slashed from the price of all beer, cider and alcopop brands for a week.

The move seems certain to be countered by rival supermarkets as the battle for market share sparked by Morrisons' takeover of Safeway in March heats up. Sainsbury's week-long offer starts on Wednesday, running right across the bank holiday weekend. By taking advantage of multipack offers, customers will be able to buy a can of Stella Artois for 67p or a bottle of Carlsberg Export for 37p.

The cuts are on top of other discounts which run into the start of the Euro 2004 tournament itself. For example, until June 22, customers can mix and match four bottles of Abbott Ale, Spitfire, Badger and Bombardier for £5.50 - or just £4.40 during the bank holiday promotion.

The supermarket said its beer prices will be around 40 per cent lower than during the Euro 2000 tournament four years ago.

Sainsbury's has been losing market share to rivals such as Tesco, Asda, and now Morrisons, all of which typically sell products even cheaper.

Sainsbury's beer buyer Ben Wheeley, said: "The May bank holiday seems to be a warm up to Euro 2004 this year and we're expecting people to take advantage of great offers and stock up for the entire tournament."