Sir; The news that Tesco buyers went "undercover" to buy grey market spirits (The Grocer, June 24, p9) says plenty about the multiple and just as much about suppliers.
But the fact remains that grey market wines, beers and spirits have been available for 20 years and more. Indeed, the past two or three years have seen a proliferation of product availability as the pound has strengthened against EU currencies.
There are many well established and well respected suppliers who have traded with grey market products for many years.
They are not dodgy, as Tesco would seem to be suggesting. Surely someone at Tesco HQ must be concerned at the thought of its buyers donning disguises and organising surreptitious meetings in car parks.
The argument from suppliers that tax is the real issue is a red herring because UK duty is paid on the grey market stock.
High duty on beers, wines and spirits is a totally separate argument that is not going to be solved quickly. There is a stronger issue with the big brand owners in respect of the price they charge (duty free) for their product. For example, we buy, duty free, an own brand 70cl Scotch whisky for 77p per bottle versus a major brand at £4.29 per bottle.
We appreciate brand owners have to invest to cover marketing and advertising costs. But how do they justify these differences?
The grey market is not all dodgy and, as with imported cars, there are major savings benefiting the consumer.
Trevor Lemm
Licensed trading director
Nisa-Today's
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