PERNOD, BEAM AND DIAGEO ATTEMPT TO LIMIT PROMOTIONS IN THE UK

A bit of UK supermarket news in the works. As you’ll recall, alcohol suppliers have had a tough time with British retailers aggressively marketing down prices, resulting in extreme competitive prices and notable margin losses. Constellation has had an especially difficult time competing against private label wines that are sourced from cheap Australian bulk imports and sold for next to nothing.

An article in The Publican claims Diageo, Pernod and Beam Global are in talks with supermarkets to stop “buy one get one free” promotions over the holidays. As you can imagine, suppliers believe the discounts and promotions create unfair competition during a very important time of year.

“This year we are recommending retailers choose a single price point for promotion and support throughout the season,” said David Smith, sales director at Diageo GB to The Publican.

We “have put through a number of price increases this year on our brands without so far seeing a negative impact on volume,” said Drew Barrand, GM of Beam Global UK.

Meanwhile, British retailer Tesco – soon to come to the US – has undergone a number of management changes in recent months. Tesco lost its fifth senior manager, Keith Down, who recently left for pub operator JD Wetherspoon. Other departures include Julia Reynods, former buying director, John Browett, head of IT and potential successor to Tesco ceo Sir Terry Leahy, Steve Robinson, head of Tesco Direct, and lastly Dido Harding, director of Tesco’s development program.

The company denies speculation of a possible “brain drain,” saying, “This stuff about a brain drain is complete nonsense. People join and people leave.”