New Zealand: Supermarkets end cheap booze offers

Date: 6 May 2009

Two of New Zealand's leading supermarkets, Foodstuffs and Progressive Enterprises, have ended the practice of selling heavily discounted alcohol following accusations that the practice helps to fuel problem drinking.

The companies had used the availability of cheap alcohol as a 'loss leader' – a promotional item designed to attract customers into stores. The country's Liquor Licensing Authority had suggested that such promotions could potentially be in breach of the law.

Foodstuffs and Progressive said that the offers had only been run occasionally, and had certainly not been the cause of an ongoing social problem. The companies said they had not co–operative over the ban – such co–operation would count as collusion and could be deemed as price fixing. However, Progressive Enterprises said that in the past it had generally run alcohol promotions only when it needed to match the activity of a competitor.

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