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ACS calls for a credible floor price for alcohol

Published:  06 September, 2010

Banning below cost sales based on a floor price of duty plus VAT is not credible, warns the Association of Convenience Stores.

Banning below cost sales based on a floor price of duty plus VAT is not credible, warns the Association of Convenience Stores.

Shane Brennan, public affairs director for ACS, said the starting price would have be more expensive than supermarkets are currently charging, otherwise it would be ineffective.


He said the duty plus VAT model, publicly backed by companies like ASDA and Morrisons, was not credible, as it would not necessarily make alcohol more expensive and would be rejected by health lobbyists.


Unless the trade gets behind something credible, we will end up with minimum pricing, he added.


Brennan said the government would have to ensure the floor price incorporated duty plus VAT plus a workable estimate of additional costs such as distribution, marketing and production.


He said: "It won't stop retailers from being able to provide customers with great value deals, but it will stop the extreme discounts such as the large volume beer deals on bank holiday weekends."


Brennan admitted that supermarkets would be "spitting mad", but said they couldn't expect a measure to be brought in that would have no impact on their current pricing.

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