Tesco criticised over lager prices

Danny Morgan
Posted: Thursday, July 1, 2010 3:25 pm

Tesco criticised over lager prices

Supermarket chain Tesco has been criticised by MPs for selling lager at below cost price after the retailer called for a ban on the practice.

Liberal Democrat Bob Russell tabled a motion in the Commons calling for the store's shareholders to condemn the practice at next month's AGM - the motion was backed by 10 other MPs.

Recently Morrison's said that retailers should be fined for selling alcohol below cost, while Tesco chief executive Sir Terry Leahy said that he was in favour of minimum pricing.

In the motion, Mr Russell said he "deplores the behaviour of Tesco in selling lager below cost price only a month after calling on the Government to outlaw the practice."

Mr Russell said he "observes that the company will be holding its Annual General Meeting on July 2 and hopes that institutional and individual shareholders will condemn the deliberate below-cost sales of alcohol."

Earlier in the month the National Institute for Health and Clinical Excellence (Nice) believed a minimum price should be introduced, but did not say what the price should be, while the British Medical Association backs a 50p per unit minimum.

The coalition Government has said it will ban supermarkets and off-licences from selling alcohol below cost price.