Pub trade must fight the supermarkets now

Pub company boss Michael Kheng is urging immediate, united action by the pub trade to lobby for minimum pricing to curb cheap supermarket alcohol deals.

The boss of Lincolnshire bar group Kurnia has given up plans to seek licence reviews of Tesco stores for selling so cheaply — he didn't think "firm evidence" linking them to the licensing objectives could be found.

But he wants united action now, before the expected consultation on banning below-cost sales is launched.

A number of voices in the off-trade, including the Wine & Spirit Trade Association and Tesco, have given support for the Government's plan to ban below-cost sales. But Kheng fears the devil may be in the detail.

"If the legislation stated no below cost sales, then what would be the case if a supermarket purchased a pallet or Tetleys in cans and then received a free pallet of Carlsberg for every pallet of Tetley's purchased?

"The Carlsberg would have come in free so therefore the cost would be zero so effectively they could sell the cans of Carlsberg at 1p.

"I feel we need to highlight to all MPs around the country that the only sensible way forward would be a minimum price per unit of alcohol, either before or after duty and VAT.

"Without a minimum price per unit the supermarkets will always find a way to sell alcohol at a ridiculously low price.

"As the new Government seem keen to do something, and there are a number of new MPs wanting to make their name heard, then I feel our industry should be shouting now, as a whole, whilst we still can have a valid input."

He said this was better than making their point during the consultation period. "Past experience has proved that everything has already been decided before the so called consultation".

He urged licensees to contact their MPs about the cheapest offers, and called on trade groups to draft a template letter for licensees and pub companies to use.

Kheng has complied a list of some of the cheapest drinks deals at supermarkets, which shows stores selling alcohol as cheaply as 29p per pint.

He calculates that one product is even being sold at a loss of 11p, when VAT is added,

"In this industry we seem to try and get everyone on board when it is too late. I feel that for once we may have a chance to voice our opinions and be heard and maybe influence any future legislation."