Co-op wine buyer bashes min pricing plans

Scotland’s proposed 50 pence minimum price has not impressed Paul Bastard, the Co-op’s long-standing head wine buyer, writes Tom Bruce-Gardyne.

Given that alcohol is “far cheaper in France and Spain,” he questioned the basic premise that it’s too cheap here. “They’ve having a go at the more responsible middle classes. So in the end they’ll get you all. They’re kind of killjoys really, and I don’t think I’m irresponsible saying that.”

“What’s interesting is that most laws are less draconian when they come in than when they’re originally mooted. This is going the other way because they started talking about 45p per unit. It’s now 50p – so we’ve already got a bit of inflation.”

With 318 stores north of the border, plus 190 Scotmid co-operatives who buy from the Co-op, he fears it will impact on sales. “I don’t see how it can’t. Whether people will be running to Carlisle I don’t know, but you can’t run from the Isle of Skye or Fort William.”

The comments came at the Co-op’s Spring wine tasting in London. The group, which bought Somerfield in 2008, has a 9.3% market share for wine (Nielsen 31.03.12).

It is particularly strong in South Africa (12% of sales), Argentina (4.5% of wine turnover) and Chile, thanks to Fairtrade. “It’s part of our DNA and always should be,” said Bastard. “We’re over 60% of all Fairtrade wine sales in the off-trade, which is huge.” Despite the recession, there has been no drop in demand.