02 August, 2006

UK: Scottish & Newcastle attacks supermarkets over cheap alcohol

Brewer Scottish & Newcastle PLC has protested to the Competition Commission about cheap beer deals offered by UK supermarkets, potentially triggering a row between the company and some of its major customers, Life Style Extra reported July 30.

In a complaint submitted as part of the Commmission's investigation into the big four supermarkets' dominance of the grocery market, S&N said discounted beer deals put prices under pressure and encourage heavy drinking, the Sunday Times and the Sunday Telegraph reported.

'We view with concern the willingness of the major multiples to invest in relatively cheap beer and cider prices to drive 'footfall,'' the papers quoted S&N as saying.

'We strongly believe that the sale of alcoholic drinks at low cost... is not consistent with the promotion of responsible drinking.'

S&N is a major supplier to the four biggest UK supermarket chains -- Tesco PLC, J Sainsbury PLC, Wm Morrison PLC, and Asda, owned by Wal-Mart of the US.

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