Retailers must put an end to the practice of selling alcohol as a loss leader and stop end-of-aisle drinks promotions, according to a medical academic.

Baroness Finlay of Llandaff, former vice dean of the University of Wales School of Medicine, told the House of Lords last week: "This is not just a problem for government; retailers have their part to play in supplying alcohol in a responsible way."

Wines and spirits in most other EU countries were sold in separate areas but in the UK were presented as end-of-aisle offers, she said. "I do not suggest retailers should try to sell less alcohol in a way that would damage profits. However, many retailers sell alcohol as loss leaders, particularly at Christmas with end-of aisle promotions."

The remarks followed an all-parliamentary group meeting where representatives from Tesco, Sainbury's, Morrisons and Asda defended their rights to sell low-priced alcohol.

"Pricing is not the proper focus when it comes to a debate on responsible drinking," said Nick Grant, head of legal affairs at Sainsbury's. "We should be looking at parental responsibility and education."

Health minister Lord Hunt said the government was still negotiating over a voluntary system of warnings and wanted intervention to be proportionate, not something that would impact on responsible consumers, manufacturers and retailers. "We consider there is great hope of partnership with industry," he said.

Baroness Finlay is among supporters of a Private Bill to compel suppliers and retailers of alcoholic products to display labels on all bottles or cans warning: "Drinking alcohol during pregnancy, even in small quantities, can have serious consequences for the health of the baby."

New labelling guidelines from the DoH are imminent and are widely expected to include warnings for pregnant women - already standard across much of Europe.