However, Tesco and ASDA aren’t stupid, and they’re not realistically going to be selling what is probably the biggest single item in most people’s shop at a loss. Yes, they often have very keen prices, but the key factor behind that is driving a hard bargain with their suppliers.
As stated by Chris Snowdon here:
This blog has always maintained that supermarkets selling alcohol below cost-price is a myth dreamt up by the temperance lobby to feed the tabloid hysteria over binge-drinking. I have looked far and wide for examples of below-cost selling happening in practice and—aside from a few products being discounted because they're approaching their 'best before' date—have never found any.He goes on to quote Richard Dodd of the British Retail Consortium saying:
“if you just stop and think about it for a minute, no business could survive - let alone thrive - if it was routinely selling large amounts of product at less than it was actually paying for it.”So, here’s a challenge. If you believe that supermarkets really do sell alcohol below the cost of duty and VAT, find me a real-world example in one of your local stores.
For reference, the price for a 440ml can of Carling is 41p, for a 70cl bottle of 37.5% vodka £8.45.
Interestingly, the other day I spotted a “special offer” in my local Tesco - four cans of Carling for £3.50. That’s about 50p per unit. So the supermarkets are flogging dirt-cheap alcohol, are they?