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Association of Convenience Stores breaks ranks with minimum pricing duty + vat

The Association of Convenience Stores warned that banning below cost sales based on floor price of duty plus VAT is not credible. Shane Brennan, the public affairs director, said the starting price would have to be more expensive than supermarkets are currently charging, otherwise it would be ineffective.

ASDA and Morrisons openly back the duty plus VAT model which the ACS believe is not credible as it would not necessarily make alcohol more expensive and would be rejected by health lobbyists.

Unless the trade gets behind something credible, we will end up with minimum pricing, he added.

Brennan said the government would have to ensure the floor price incorporated duty plus VAT plus a workable estimate of additional costs such as distribution, marketing and production.

He said: It won’t stop retailers from being able to provide customers with great value deals, but it will stop the extreme discounts such as the large volume beer deals on bank holiday weekends.

Brennan admitted that supermarkets would be spitting mad, but said they couldn't expect a measure to be brought in that would have no impact on their current pricing.