Supermarkets slashed alcohol so much before Christmas that off licences were buying stock from them

By
Sean Poulter

Last updated at 11:35 PM on 23rd January 2012

Alcohol prices at supermarkets were so slashed over Christmas that off-licences used them to stock their shelves

Alcohol prices at supermarkets were so slashed over Christmas that off-licences used them to stock their shelves

Supermarkets slashed drink prices so low in the run-up to Christmas that corner shop owners queued up to buy stock for their shelves.

Standard bottles of well-known brands of spirits were cut to as little as £11, while larger litre bottles were selling at £13.

Small businesses said the prices were so low it was cheaper for them to buy from a supermarket than go to their usual wholesalers or cash and carry firms.

Details were revealed by the trade magazine, The Grocer.

It gave the example of Ranbir Singh Chima, who owns Milton News Food and Wine in Kilbirnie, Ayrshire.

He spent £1,000 on spirits alone at Asda and Tesco.

Mr Chima said: ‘The supermarkets were doing litres at £13. We can’t buy them at that price from a cash and carry.’

He also spent £1,500 at Asda on 200 cases of Tennent’s lager and Budweiser, which were being sold at £7 each.

‘I usually go to the cash and carry to buy the Budweiser for £7.49 plus VAT,’ he added.

Low supermarket prices are contributing to the closure of 16 pubs a week, says the Campaign for Real Ale.

The Institute for Public Policy Research is today calling for a minimum price per unit of alcohol ‘to prevent irresponsible promotions’ by supermarkets and to close the price gap between stores and pubs.

Smirnoff Black
Gordon's Gin
Prices for big brand bottles such as Baileys, Smirnoff and Gordon's were heavily discounted

Prices for big brand bottles such as Smirnoff Vodka,  Gordon’s Gin and Baileys were heavily discounted

Mr Chima told the magazine he managed to buy so much by splitting the purchase between members of his five-a-side football team.

‘After practise we would all go down and pick up three bottles each,’ he said.

The many Asda deals included selling Baileys at just £7 and Famous Grouse at £12, which was down from £15.97.

Both
Tesco and the Co-op were selling major brands such as Smirnoff and
Gordon’ s for £11,  while Morrisons was selling Bacardi’s Eristoff vodka
at £10.59.

Sainsbury’s opted for a two-for-£22 multi-buy in England and Wales on brands including Smirnoff, Eristoff and Baileys.

The low prices appear to be at odds with promises from the major supermarkets to support measures designed to encourage responsible drinking.

Generally, supermarkets restrict the amount of alcohol that any one shoppers can buy under their cut price promotions in order to ensure there is enough to meet demand.

However, it appears a number of supermarket managers arranged back door deals with small independents which flouted this rule.

Generally, wholesalers see a big increases in sales in December, which accounts for 25per cent of annual sales. However, many did not see the usual seasonal increase.

A senior source at a cash and carry supplier said the evidence suggests his corner shop customers had switched to using supermarkets.

Tesco and the Co-op were selling major brands for £11 while Sainsbury¿s opted for a two-for-£22 multi-buy in England and Wales

Tesco and the Co-op were selling major brands for £11 while Sainsbury¿s opted for a two-for-£22 multi-buy in England and Wales

He told the magazine: ‘I asked my customers where they were getting stock from and they told me the multiples. The larger ones said the store manager waived the maximum purchase and sold them pallets.’ 

A senior supplier source also said he knew of supermarket managers doing similar deals via the back door ‘into a white van or even into a truck’ just to increase the volume going through tills.

A spirits supplier said one of its brands had been seen for sale in one of the big four supermarkets at below the wholesale cost.

He said: ‘We had wholesalers calling us because they could not even buy it from us at that price. From a supplier point of view, yes, we benefit from the volume, but in the longer term it creates issues.’

A Tesco spokesman said: ‘We aim to offer all our customers great promotions, and to ensure consistent availability do not support stores knowingly making sales to trade.

‘As a responsible retailer, all of our staff are trained to limit alcohol purchases to reasonable personal consumption.’

Asda said it ‘limits the quantity of products to ensure all our shoppers have a chance of getting the great price’.

Here’s what other readers have said. Why not add your thoughts,
or debate this issue live on our message boards.

The comments below have not been moderated.

I’ve seen this type of thing several times recently. I was in my local Asda last evening and bought 2 bottles of (excellent) Australian Sauvignon Blanc for £2.48 each..!! We were in a bar in Brighton last Friday and on the wine list was a bottle of Pinot Grigio at £14, the exact same wine sells in Asda for under £6 a bottle.

This has been going on for years, you only have to go to the supermarket when anything decent is on special and you see people with cart loads of the specials there is o way in the world that they could be using this in the normal consumer way. These are corner shop owners who buy up big and then sell at inflated prices. Should not be allowed auditors should demand proper documented evidence of where items were bought its all cash as one other reader pointed out and therefore they are making a huge profit with no paperwork having to be done. WIth one shop recently offering a large bottle of very popular brand of Cola for 1.20 Aus Dollar. I saw a man and woman with a trolley ful of this stuff and the cholate that was on special. Mind you I suppose they could have just been little piggies but I doubt it

When you are having your break at the seaside down my neck of the woods , you will be having the cheap supermarket bread as toast with your brekkie as I have seen local cafe owners take it out by the basketful .

This is not news, anyone with an ounce of sence would see this coming!
If supermarkets sell a product for less that your usual supplier of course you would purchase form them unless your tied into some contract then you would only do it for the undeclared sales !! Yes this goes on in every corner shop, and that’s not talking about the under counter sales of contraband!
Come on DM start delivering real news for once please

Shame they won’t cut the cost of fresh fruit and veg, meat and dairy products instead.
– JanieGD, Birmingham, England, 23/1/2012 16:13—————- All of them do on selected lines, just like they do on alcohol and everything else they sell.

I been bumping into the owner of my local curry house buying cases of Cobra in Tesco for years .

a Nation of alcoholics preened for the future , wake up people and turn your back on this family breakdown ‘product’.

Here in Australia the Supermarket “specials” often sold “below cost” work like this: A “special” runs for a week usually, but the store is able to buy stock at a reduced, maker subsidised, price for 3 weeks, one before and one after the “special” week. It means they can make extra profit margin on normak sales levels in week 1, not much profit, maybe even a loss in the “special” week on increased sales numbers, and then can order as much as they want in week three when their margin is back up. If the stock is long life, like booze, they can stockpile months of stock at the maker’s subsidised price to sell at full price. Some years ago I knew of one supermarket which normally sold 20 packs of Coca Cola cans per week who ordered a full semi-trailer load – 20 pallets – at the cheap price, which was not passed on the buyers – Situation normal in retail trade.

Corner shops and off licences do this ALL THE TIME. Not just with alcohol, but with other deals too.
– Yeah I Said It, Behind you, 23/1/2012 18:47
How would you know? No we dont do it ‘all the time’ most of us dont do it at all. Obviously the shop keeper interviewed has a rubbish wholesaler he uses.

Small shops have been doing that for well over twenty years DM. Do try to keep up

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