Axe falls on three-for-£10

17 May, 2010

Retailers have signalled the days of the three-for-£10 deal could be numbered, as Asda and Sainsbury’s shift their promotional emphasis to higher price brackets.

Both retailers have upped the price of the infamous multibuy to three bottles for £12 in a bid to raise quality and choice.

The mechanic has been central to Asda’s wine offer since 2007 and sparked similar deals across the sector.

But Asda said it was permanently committed to the new price. Adrian McKeon, category director for beers, wines and spirits, said: “Our three-for offers in wine are extremely popular, and encourage customers to taste and trial new and exciting wines.

“After customer feedback, we have increased the quality and variety of the wines in the three-for-£10 range and as a result have increased the price to three-for-£12.

“We believe this price reflects the quality of the range and will allow customers to choose from a broader offering, including wines from our award-winning range.”

As part of a raft of new merchandising changes, Sainsbury’s has followed suit by notching up its price.

A spokesman said: “We know from feedback that multibuys are really important to our customers and we are always looking at new promotions that strike the right mix between price and quality.

“While it isn’t necessarily a permanent switch, the three-for-£12 offer allows us to highlight some of the other wines in our range and is already proving really popular with customers.

“We have lots of ideas coming up to allow customers to discover better quality wines, particularly around information at purchase, but clearly promotions remain an important part of the mix.

“It is neither a trial nor a permanent switch – more just a case of us ensuring we deliver a varied mix of promotions for our customers.”

Tesco said it had no plans to move away from three-for-£10. A spokesman said: “It only represents 12% of the promotional mechanics offered to Tesco customers, but it currently remains a part of the mix.”

Suppliers have welcomed the price adjustment. One told OLN: “Asda led the way with three-for-£10 at a time when Tesco was bringing in hundreds of new premium wines. It’s caused a lot of controversy in the trade, but it’s driven a great deal of growth in the market.

“Given where we are with duty, pricing had to change because no one is making any money. Even Tesco seems to be weaning itself off the three-for-£10 drug by trying different pricing, such as half-price deals. It’s good news for suppliers.”

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