Asda is the first grocery retailer to announce alcohol price cuts across the category for the festive period.
The retailer, which prides itself on being Britain’s cheapest supermarket, is dropping prices on about 150 different spirits by at least £2.50 each and launching its ‘two for £20’ deal on large packs of beer for a 12-week period.
Mike Regnier, general manager for Asda beer, wines and spirits, said: “This year, more than most, customers are looking to save money on all their Christmas reductions.”
The price cuts should come as no surprise to Diageo, the owner of the popular Christmas brand Baileys, which has often been the target for aggressive pricing tactics. But Asda’s announcement this week that one litre of Baileys would be reduced by £4 to £10.88 is likely to spark fears that the price will drop lower than last year, when the price of a one-litre bottle fell to £9.88 just before Christmas.
The drinks giant said earlier this year it was hoping its new Baileys advert - part of a £5m Christmas investment in the brand - featuring the ‘Chilling together with Baileys’ message, would help convince retailers its brands were strong enough not to be sold cheaply.
Asda also announced plans for a ‘two for £20’ deal across nine major beer brands, but brewers are likely to be encouraged because in most instances, the offer focuses on the emergence of 20-packs rather than 24-packs.
Keith Hogg, group sales director at Scottish Courage, said he thought Asda’s large-pack beer deal looked competitive for its shoppers.
He added: “It looks like a responsible deal but we will be reminding retailers there is still a market for smaller four, six and eight-packs of beer this Christmas as well.”
Sonya Hook
The retailer, which prides itself on being Britain’s cheapest supermarket, is dropping prices on about 150 different spirits by at least £2.50 each and launching its ‘two for £20’ deal on large packs of beer for a 12-week period.
Mike Regnier, general manager for Asda beer, wines and spirits, said: “This year, more than most, customers are looking to save money on all their Christmas reductions.”
The price cuts should come as no surprise to Diageo, the owner of the popular Christmas brand Baileys, which has often been the target for aggressive pricing tactics. But Asda’s announcement this week that one litre of Baileys would be reduced by £4 to £10.88 is likely to spark fears that the price will drop lower than last year, when the price of a one-litre bottle fell to £9.88 just before Christmas.
The drinks giant said earlier this year it was hoping its new Baileys advert - part of a £5m Christmas investment in the brand - featuring the ‘Chilling together with Baileys’ message, would help convince retailers its brands were strong enough not to be sold cheaply.
Asda also announced plans for a ‘two for £20’ deal across nine major beer brands, but brewers are likely to be encouraged because in most instances, the offer focuses on the emergence of 20-packs rather than 24-packs.
Keith Hogg, group sales director at Scottish Courage, said he thought Asda’s large-pack beer deal looked competitive for its shoppers.
He added: “It looks like a responsible deal but we will be reminding retailers there is still a market for smaller four, six and eight-packs of beer this Christmas as well.”
Sonya Hook
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