Tesco undermines support for below cost selling

Tesco is reported to have been selling wine for just £1.11, despite claims from the UK’s biggest supermarket that it supports a government move to prevent the sale of alcohol below cost price.

According to the Daily Mail, the Bulgarian Silver Rock Chardonnay was spotted on sale in West Lothian for £1.11. It is currently available on the Tesco website for £2.84. With duty alone adding up to £1.69 per bottle, it difficult to see how, even at full price, the wine is being sold at anything other than below cost.

Tesco defended the decision on the basis that the wine is being delisted. While the £1.11 price tag may have been an anomaly, the supermarket confirmed that managers nationwide had been authorised to sell Silver Rock for as little as £1.50.

The store today contacted db off the back of the story to reaffirm its stance on minimum pricing and to confirm how the anomoly occurred.

A Tesco statement said: "Tesco was the first retailer to call for an open debate on alcohol pricing. As retailers are unable to discuss pricing with each other, and no one retailer can change the system alone, the debate must be led by the Government and have industry wide participation.

"In this individual case with the Silver Rock Chardonnay, ranging adjustments meant that the product was delisted in some stores. As part of the automatic system process, the line was reduced to clear in the same manner as any other product, but was corrected when the anomaly was registered.

"Tesco remains committed to responsible retailing of alcohol and is the largest retail contributor to the Drinkaware Trust."

Gabriel Savage, 12.07.2010