Asda declares war on alcohol misuse

July 23rd, 2010

Leading retailer Asda has introduced a new minimum pricing structure on alcohol.

The group has further declared that it will undertake closer working relationships with the UK government to ensure that it is at the forefront of tackling alcohol misuse and abuse across Britain.

The announcement follows the recent high-profile media case of a Tesco store that sold wine for less than cost price in Scotland, leading health campaigners to claim that supermarket chains could not be trusted to be self-policing when it came to the sale of alcohol.

Asda introduced its new alcohol policy on Tuesday, whereby a floor price of duty plus VAT is set on more than 99 per cent of the alcohol sold by the group. This will result in a minimum price of £8.95 for a 20-pack of 440ml 5 per cent strength cans of beer, which would be made up of a duty of £7.62 plus the VAT of 17.5 per cent on top. Similarly, a 750ml bottle of wine would go for a minimum of £1.99 and a one-litre bottle of spirit such as vodka at £10.49.

Asda has also proposed that the government enforce the same policy throughout the entire retail industry in a letter to home secretary Theresa May from chief executive Andy Clarke. Mr Clarke claims that Asda supports a Responsibility Agreement on Alcohol development agreement to ensure that the previously successful partnership between government and industry would not be wasted, and that in conjunction with the OFT, all those involved would be responsible for establishing a safe retail environment which would openly discuss and tackle the issues of alcohol misuse across the UK.

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