Bargain booze stays on shelf

Major supermarkets and off-licences have been slammed for absorbing hikes in alcohol duty announced in the recent Budget.

Current discount deals include Asda offering two bottles of wine for £8 and a four-pack of Bacardi Breezers for £3.86.

And in a letter seen by The Publican off-licence chain Bargain Booze asks it suppliers to help keep prices down for its customers.

It says: "Given the discount price strategies adopted in the past few years by the multiple grocers we are not confident the Budget will result in material increases in retail prices.

"In other words, we believe, based on past evidence, that this tax is unlikely to be passed on to the consumer in any meaningful way." Alistair Darling sparked on-trade fury by announcing a 4p duty rise in beer, 14p on a bottle of wine, 55p a bottle on spirits and 3p a litre on cider.

But Mark Hastings, communications director at the British Beer & Pub Association, said the Bargain Booze letter highlighted what the on-trade had said before the Budget.

"The large off-trade shops have been very adept at ensuring their prices are not increased," he said.

"All the tax increases will do is increase the competitive disadvantage and increase drinking outside a supervised environment such as the pub."

Bargain Booze was unavailable for comment.

Grogan asks why

MP John Grogan has called for clarification from ministers on the reason for the Budget hike in alcohol duty.

During a debate in the House of Commons, Grogan said the Budget was a "significant change in the policy on alcohol duty".

He added: "For the first time, there was a hint that alcohol duties were being raised for health as well as revenue reasons. I would be interested in any clarification from ministers on that point."