Tesco's decision to slash the price of Carlsberg this week brought angry reactions from the trade. It offered a short-term deal on 24-packs of Carlsberg Lager 440ml cans which cut the price from £15.75 to £9.95, the same level as the cutthroat deals that dominated the market in November and December. Landmark trading controller Kevin Thistlethwaite said: "I am at a loss to understand what is going on. I can understand them promoting in October ahead of Christmas, but starting in February is ridiculous. "We have had talks with Carlsberg-Tetley but we get the same old responses that it is part of an ongoing strategy and is joint funded with the supermarket. "They say they don't want equity to come out of the brands, but this is what is happening. This is not the out-of-the-box original thinking that we need." Coors Brewers sales director John Holberry questioned whether there was any retailer funding. "I don't understand why the multiple would want to fund this kind of deal. It makes sense at Christmas, but not in February. I can't see why the multiple would think a cheap 24 pack now would attract any more people into the store. "We won't be responding to it, the price is uneconomic." Carlsberg-Tetley has announced a major £45m push behind its lager brands this year (see p68) and managing director Doug Clydesdale promised he would be competing very aggressively for market share. "If that means price deals then so be it. The retailers will want keen pricing but this will be a combination of shared margin in some form." A Tesco spokeswoman said: "We never rest on our laurels and like to break with tradition and ensure we have the best possible offer." l See p49. {{NEWS }}

Topics