news
C-stores welcome Asda below cost selling ban
than the combined cost of duty and VAT. The move was unveiled in a letter to Home Secretary Theresa May by the group’s Chief Executive Andy Clarke. In it, Clarke said it was the “first step” towards a new way of selling alcohol.
The letter from Clarke
Asda has announced it is to stop selling alcohol below cost price. This significant move pre-empts any legislative change that may be proposed in either the UK or Scottish parliament with Asda hoping that its measure stops any mandatory changes to alcohol pricing such as the Scottish Government’s minimum pricing proposal. Crucially for Scotland’s
convenience retailers, none of whom are known to be selling below cost price, the new pricing structure will close the gap between the two channels. The move was welcomed by Scotland’s convenience retailers with SGF public affairs advisor Katie Mackie calling it “the best way to deal with alcohol pricing problems”. The supermarket’s new policy will see alcohol sold for no less
FSA set to be disbanded
The Government is set to abolish the Food Standards Agency, according to media reports. It has been indicated in newspapers that Health Secretary Andrew Lansley will move the regulatory aspects of the FSA the Department for Environment, Food and Rural Affairs (Defra), while its responsibilities for nutrition, diet and public health will be incorporated into the Department of Health. Andrew Burnham, Labour’s
Health Spokesman, said: “Getting WWW.55NORTH.COM
rid of the FSA is the latest worrying step that shows Andrew Lansley caving in to the food industry. It does raise the question whether the Health Secretary wants to protect the public health or promote food companies.” The FSA was a major
campaigner for the controversial Traffic Light system on food labeling that requires companies to mark certain aspects of their foods, such as calories, fat, saturated fat and salt per serving as red, amber of green.
continued: “I believe that a ban on selling below a floor price of duty plus VAT would raise the price of the cheapest alcohol deals and promotions and give government the lever to ensure that increases in tax are passed on to consumers. “It would not penalise the vast majority of customers who drink responsibly. Importantly, the beneficiary of higher prices would be the public purse, with funds available to tackle alcohol misuse rather than accruing to the drinks industry, as would be the case with minimum pricing.” The move was welcomed by the Scottish Grocers’ Federation, with the group’s public affairs adviser Katie Mackie, saying in The Scotsman: “In the past we’ve always suggested that this approach is the best way to go about dealing with issues
surrounding alcohol prices. Our view is that a ban on selling below-cost alcohol would be a much less intrusive approach than minimum pricing. “We’ve always been concerned about minimum pricing because we don’t know what the price will be. Also we’ve had concerns about cross border and internet sales of alcohol that might go on if we had minimum pricing. However, Asda’s new policy was quickly branded “cynical” by alcohol charity Alcohol Concern, with chief executive Don Shenker saying: “While we welcome any step to stop the cheap sales of alcohol by retailers, this move is really a desperate and cynical attempt by Asda to stave off future government legislation.” The news was widely welcomed in the most part at Holyrood with Labour, the Tories and the Lib- Dems all making positive noises about the move. The Government released a short statement that said: “Asda’s proposals may be a step in the right direction, but they fall far short of what is necessary to tackle the scale of Scotland’s alcohol problem.”
Helpline launched by Caravan
Caravan, the charity for the grocery industry, has launched a dedicated Helpline aimed specifically at those in need in all areas of their life, in particular helping people and families solve difficult personal problems. The Caravan Helpline focuses on personal welfare problems arising from work, as well as at home. The dedicated freephone Helpline (08088 02 11 22) is open to all who work in the grocery industry, ranging from the independent store to the multinationals. Furthermore, for people who prefer not to ask for help, or may never pick up a phone to get
support, there is a web-based range of self-help tools and advice. There is also a telephone counselling service for critical response incidents. Uniquely, this service will help people who have experienced incidents which are harmful or threatening.
AUGUST 2010 l SCOTTISH LOCAL RETAILER l 5
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