Financial Times FT.com

Blighty’s booze

Published: November 1 2009 19:25 | Last updated: November 2 2009 09:52

The last orders bell is ringing at many of the UK’s off-licences and pubs. Threshers’ fall into administration last week followed that of Wine Cellar earlier in the month. Cash-strapped pub operator Globe was also forced to sell its estate of 421 pubs to Heineken on the cheap last week. While the economic downturn can be blamed, structural forces are also at work.

Supermarkets – whose campaigns promoting affordable luxuries show consumers can still be tempted to splash out – use cheap alcohol as a loss-leader to entice consumers into their stores, making profits on a customer’s entire basket of shopping. Smaller operators cannot compete.

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