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Asda stops selling alcohol below cost

Josie Clarke
Thursday 22 July 2010 19:00 EDT
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Asda has become the first supermarket to end below-cost alcohol deals. The supermarket has introduced a policy not to sell alcohol below the cost of duty plus VAT.

Chief executive Andy Clarke outlined the move in a letter to Theresa May, the Home Secretary, saying it was a "first step" towards a new way of selling alcohol in the UK. The policy took effect on Tuesday and ensures a one-litre bottle of Smirnoff vodka will not cost less than £10.49 and 20 Carling lagers will not be priced below £7.17.

Mr Clarke said: "We accept that the way in which alcohol is sold needs to change and I welcome the high priority given by the new Government to tackling alcohol misuse by working with business."

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