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Aldi’s viral Cairanne hits snag with MUP regulations in Scotland and Wales
Aldi’s budget-friendly festive favourite, the Specially Selected Cairanne, made headlines this holiday season with its return at the price of £3.49, down from its usual £8.49. However, the viral promotion faced hurdles in Scotland and Wales due to minimum unit pricing (MUP) laws, preventing the wine from being sold below £6.83 in these regions.
The Cairanne, a southern Rhône blend of Grenache, Syrah, Mourvèdre and Carignan, has become a hallmark of Aldi’s commitment to offering products at unbeatable prices. “We want everyone to be able to enjoy the festive season, so we’re doing all we can to keep our prices low this Christmas – just as we always do,” an Aldi spokesperson told db.
While the promotion saw the Cairanne fly off shelves across the UK, selling more than three bottles every second on its launch day, pricing adjustments were necessary in Scotland and Wales to comply with the MUP policy. “The Specially Selected Cairanne was also discounted in Scotland and Wales; however, prices differed to ensure products did not fall below the MUP,” confirmed the spokesperson.
This year’s promotion drew attention not only for its affordability but also for its potential impact on the wine market. Industry insiders question how Aldi achieves such steep discounts without compromising quality. The retailer credits its efficient business model, enabling savings to be passed directly to customers.
A loss leader?
“Aldi can offer lower prices to shoppers due to our efficient business model and responsible ways of working – this helps to reduce our operational costs. Rather than using these savings to boost margins, we pass our savings on to customers in the form of lower prices,” the spokesperson explained.
The Cairanne was part of Aldi’s Wine of the Week promotion, running from 2nd to 8th December, and proved to be a massive hit. Thousands of bottles were sold within days, echoing the success of the product’s debut last year when it was described by The Times as “Aldi’s Christmas present to the nation.”
Despite the buzz, the Cairanne’s pricing raises questions about sustainability. With Alcohol Duty alone accounting for £2.67 per bottle and additional costs like VAT, production, and shipping, the £3.49 price point appears to be a significant loss leader.
As Aldi continues to push boundaries with bold pricing strategies, the Cairanne’s viral success illustrates the delicate balance between offering value to consumers and navigating regulations. Whether this approach can be sustained remains a topic of interest for the industry, especially as consumers increasingly demand both quality and affordability in the products they buy.
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