North-east licensees back minimum pricing

By John Harrington

- Last updated on GMT

Cheap deals: out of favour in north-east
Cheap deals: out of favour in north-east
More than eight out of 10 north-east licensees support minimum pricing to curb cheap supermarket sales and lift their trading gloom. That's...

More than eight out of 10 north-east licensees support minimum pricing to curb cheap supermarket sales and lift their trading gloom.

That's according to a survey of 244 licensees by Balance, the North East Alcohol Office, which is part-funded by the Government and is campaigning for a minimum price of alcohol.

In total, 81% back minimum pricing. The greatest support was among licensees of suburban pubs (85%) and those with turnover between £601,000 and £1m (89%).

Other findings were:

• a third put the introduction of a minimum price per unit in the top three factors that could make the biggest impact on boosting profits - behind any change aimed at curbing supermarkets (55%) and controls on tied prices (47%)

• 51% offer drinks promotions to counteract supermarket price cuts

• 88% said supermarket deals have hit trade in the past year

• 56% experienced a decline in business last year

• two in five predict that this decline will continue over the next 12 months

• Meanwhile, 61% favoured a return to fixed closing times

The Government is consulting on banning sales of alcohol below cost, but Balance has joined calls to go further and implement minimum pricing.

Balance's campaign has received support from prominent trade figures in the region, as well as the regional BII body.

Ian Taylor, operations and marketing manager at north-east pub operator Head of Steam, said: "We have definitely noticed a lull in trade during the early evening, which has meant we have to operate later, which puts pressure on staff and budgets.

"It doesn't take a genius to link this to the increase in pre-loading, or people getting drunk on cheap supermarket alcohol before they hit the pubs and clubs."

Regional BII chairman Richard Slade, who owns the MA's Great British Pub of the Year, Battlesteads Hotel in Hexham, said: "Hundreds of pubs have closed in the North East recently and we feel that the widespread availability of cheap alcohol at supermarkets is a major factor."

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