EU: Scottish & Newcastle submits its concerns about grocery price cuts to Competition Commission

Supermarkets are cutting the price of beer to pull in customers, Scottish & Newcastle, one of Europe's biggest brewers, has complained, Ananova released August 15.

Scottish & Newcastle is asking the Competition Commission to look into the matter as part of its investigation of the UK's £95 billion grocery sector. Slashing drink prices to bring customers into the shop is out of synch with the responsible drinking message, it complains.

The brewer has set out its concerns in a submission to the Competition Commission.

"We view with concern, the willingness of the major multiples to invest in relatively cheap beer and cider prices, to drive footfall within this sector," it says. "We strongly believe that the sale of alcoholic drinks at low cost, used primarily to drive footfall into stores, is not consistent with the promotion of responsible drinking."

The brewer's submission to the Commission cites "firm anecdotal evidence" that people drink cheap alcohol at home before hitting pubs and bars. A roll-out of the smoking ban to England and Wales is likely to increase drinking in the home, it adds.

The Competition Commission launched its wide-ranging inquiry into suspected anti-competitive practices in the UK grocery sector earlier this year. A CC spokesman said the inquiry's remit included the below-cost selling of groceries such as alcohol.

"Any issues relating to below-cost alcohol is something that we are looking at. The social responsibility issue isn't something that we are concerned with," he said. The CC is currently accepting submissions from interested parties.

16 August, 2006