Health Secretary Alan Johnson today confirmed the government is willing to take "mandatory action" against supermarkets that sell alcohol as a loss leader.
Speaking at a press conference to launch the government's Youth Alcohol Action Plan, Johnson said the evidence from a report by Sheffield University into pricing and promotion, due in August, would determine the government's decision.
"We are very keen to work with the industry, but if as a result of everything we see we believe that a mandatory code is necessary then that's what we'll do," he told reporters.
However the Observer reported at the weekend that the government had "cooled" on the idea of tackling cheap supermarket deals. It claimed Whitehall departments had clashed over fears that consumers would not put up with more expensive alcohol, amid rising food and fuel bills.
Meanwhile, at today's press conference, Ed Balls, children's secretary, said pubs were now "less intimidating places" and alcohol is much cheaper than when he was young. "But it's no excuse to say that pubs are cheaper or nicer to go into. Under 18s should not be going into them," he said.
Home Office minister Vernon Coaker said test purchasing would continue to be a key part of how the industry was monitored for underage sales.
Earlier, Balls said the plans were as much about a "cultural change" as enforcement.
Among the other government's plans announced were a national roll-out of the Challenge 21 scheme and a two-strikes rule on sales to under-18s in three months in licensed premises, as opposed to three-strikes.