Festive spirits: shoppers gain in bottle battle

IRELAND is in the grip of booze wars as retailers fight to win vital Christmas custom by offering rock-bottom prices on drink.

Last week Tesco began its heavy promotional campaigns offering below-cost spirits, half-price wine and discount beer.

Within days, SuperValu had slashed the price on eight market leaders to match the prices in Tesco’s advertisements while Dunnes has made reductions on six popular drinks.

The Consumers’ Association of Ireland (CAI) said stores were discounting alcohol prices to fight off competition from the North, where lower taxes meant drink was 20% cheaper.

“Supermarkets don’t want the mass exodus over the Border that normally happens for these products at Christmas,” said CAI chief executive Dermott Jewell.

“Consumers have been heading North in their droves for the last couple of years and they can also do a lot of their other Christmas shopping there as well.

“Our retailers are trying to keep all that custom here so they’re using cheaper drink prices as an incentive — that’s a key strategy at Christmas time.”

He welcomed the price cuts as an indication of greater competition among supermarkets following the lifting of price controls on general groceries earlier this year.

Among the weapons being used in the booze price war are loss-leaders, with Tesco selling four leading brands of spirits at below-cost as a way of enticing customers.

Early last week, SuperValu was selling the same four spirits for up to €3.14 more than Tesco but, last Thursday, lowered prices and started charging the same.

Similarly, Dunnes has reduced the prices of Heineken, Guinness and Budweiser by up to €4.50 per 24-pack to match Tesco’s prices.

An Irish Examiner price survey on Christmas beers, wines and spirits reveals Tesco is the cheapest supermarket overall on 10 popular drinks.

Tesco and SuperValu charge exactly the same for seven of the 10 drinks while Dunnes matches its rival on three of the favourites.

Dunnes was top for cheap Chardonnay white wine while SuperValu won the race for the keenest-priced Shiraz Cabernet red wine.

Further evidence of the price war comes from SuperValu’s list of current savings, available on the chain’s internet site.

In-store promotions in Dunnes have seen certain prices quietly reduced to the same as Tesco with €4.50 off a 24-pack of Guinness. SuperValu also charges the same for the stout.

Tesco is trumpeting that four brands of spirits cost less than they did last year but on three brands — Bacardi rum, Paddy whiskey and Cork Gin — SuperValu almost matches the price.

A Tesco spokesman denied the chain had triggered a price war with its rivals in the run-up to the most lucrative period for the retail industry.

“This would be seen as a Christmas campaign first and foremost.

“It’s pretty standard,” said a spokesman.

The National Off-Licence Association said it was worried that supermarkets were using low drink prices as a general sales ploy, hitting the sales of its members.

“When the Government abolished the Groceries Order, we were concerned that supermarkets would use alcohol prices to get people through their doors.

“We made representations to the Government at the time and we will see how this Christmas goes — most of the supermarkets are advertising nothing but alcohol at the moment.”

Dublin’s Rutland Centre, which treats alcohol and drug addicts, said it was more concerned with the amount people drank over Christmas rather than the price they paid.

“We worry about people over-drinking as Christmas seems to be a very high-risk time of year,” said centre director Stephen Rowen.