Hopes that value rather than volume would be the focus for Christmas alcohol sales have been dealt a blow as supermarkets begin an early discounting war by slashing prices by up to 40%.
With two months still to go to Christmas, Asda and Sainsbury have already started festive promotions offering two packs of beer for £20, which equates to 42p a can on some brands.
Despite hopes that suppliers and retailers could withstand the pressure to shed volume through value-stripping discounting, it looks as if sluggish summer sales and a surplus in production mean the annual pricing cull will be as frenzied as ever.
Although there is some upward movement on prices and a new focus on value-added alcohol gifting, prices are expected to plunge even further as Christmas approaches.
Asda’s Christmas beer deal, starting this week and running until the new year, offers two for £20 on 20-packs of Stella and Foster’s, 24-packs of Carlsberg, Strongbow, Kronenbourg 1664 and Grolsch, 18-packs of John Smith’s Extra Smooth and 15-packs of Guinness. It represents a reduction of up to around £7 on single packs. An Asda spokesman said: “Once again this year we’ll be offering customers the lowest possible prices. Our aim is to ensure they get the best value for money for their entire Christmas shop.”
Sainsbury is offering two-for-£20 deals on beer packs and Smirnoff Ice, as well as £5 off Baileys (one litre), £3 off Famous Grouse, £2.50 off Bell’s and £5 off Glenmorangie.
Its wine offers over Christmas have promotions including a bottle of Sainsbury Orivieto Classico being reduced from £4.79 to £3.29, £1 off Blossom Hill brands and £2 off Lindemans and Kumala.
Morrisons, which has promised to compete favourably on price after the Safeway takeover, has started an Early Bird promotion with one-litre bottles of Smirnoff, Gordon’s, Teacher’s and Baileys for £12.99.
Last year, a 24-pack of Stella fell to £9.87 in the week before Christmas and a Baileys bottle sold for £11.38 in the multiples.
Keith Hogg, sales managing director at Scottish Courage Brands, said: “The prices in the marketplace to date are very much in line with our expectations and are very similar to those experienced during Euro 2004.
“These prices represent tremendous value to the shopper and we see no reason why prices need to be any lower in the run-up to Christmas.”
It comes amid an increased focus by government on the problem of binge drinking and disorder, although ministers and police have acknowledged the problem is more prevalent in the on-trade (‘Retailers not to blame’, The Grocer, Sept 11, p4).
>>p22 Opinion
Claire Hu
With two months still to go to Christmas, Asda and Sainsbury have already started festive promotions offering two packs of beer for £20, which equates to 42p a can on some brands.
Despite hopes that suppliers and retailers could withstand the pressure to shed volume through value-stripping discounting, it looks as if sluggish summer sales and a surplus in production mean the annual pricing cull will be as frenzied as ever.
Although there is some upward movement on prices and a new focus on value-added alcohol gifting, prices are expected to plunge even further as Christmas approaches.
Asda’s Christmas beer deal, starting this week and running until the new year, offers two for £20 on 20-packs of Stella and Foster’s, 24-packs of Carlsberg, Strongbow, Kronenbourg 1664 and Grolsch, 18-packs of John Smith’s Extra Smooth and 15-packs of Guinness. It represents a reduction of up to around £7 on single packs. An Asda spokesman said: “Once again this year we’ll be offering customers the lowest possible prices. Our aim is to ensure they get the best value for money for their entire Christmas shop.”
Sainsbury is offering two-for-£20 deals on beer packs and Smirnoff Ice, as well as £5 off Baileys (one litre), £3 off Famous Grouse, £2.50 off Bell’s and £5 off Glenmorangie.
Its wine offers over Christmas have promotions including a bottle of Sainsbury Orivieto Classico being reduced from £4.79 to £3.29, £1 off Blossom Hill brands and £2 off Lindemans and Kumala.
Morrisons, which has promised to compete favourably on price after the Safeway takeover, has started an Early Bird promotion with one-litre bottles of Smirnoff, Gordon’s, Teacher’s and Baileys for £12.99.
Last year, a 24-pack of Stella fell to £9.87 in the week before Christmas and a Baileys bottle sold for £11.38 in the multiples.
Keith Hogg, sales managing director at Scottish Courage Brands, said: “The prices in the marketplace to date are very much in line with our expectations and are very similar to those experienced during Euro 2004.
“These prices represent tremendous value to the shopper and we see no reason why prices need to be any lower in the run-up to Christmas.”
It comes amid an increased focus by government on the problem of binge drinking and disorder, although ministers and police have acknowledged the problem is more prevalent in the on-trade (‘Retailers not to blame’, The Grocer, Sept 11, p4).
>>p22 Opinion
Claire Hu
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