Associate Justice Minister condemns supermarket's 'targeted and aggressive' marketing of $3.99 six-packs, amid calls to speed up the review of the Sale of Alcohol Act. Jonathan Milne reports.
The owners of New Plymouth's biggest supermarket have refused to acknowledge any social or legal responsibility over selling six-packs of lager for $3.99 – less than the price of bottled water.
The Hollandia Premium six-packs sell at other Pak'nSaves for $12.49 each. The Sale and Supply of Alcohol act makes it illegal to promote or advertise discounts on alcohol of 25 percent or more below the price at which the alcohol is ordinarily sold.
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Pak'nSave's "extra low" price equates to a 68 percent discount. A big price billboard in the store used one of the supermarket chain's advertising catchphrases, "Shhh, that's got to be a misprint."
Grant Farquhar was one New Plymouth shopper who was persuaded to buy the discounted beer. "I purchased two six-packs. I don't know the rules regarding alcohol discounts," he said. "Was it a good deal? Sure, if you can stomach average European lager."
After being approached by Newsroom, Foodstuffs North Island removed the Hollandia six-packs from online sale at its New Plymouth store.
“We became aware of an issue regarding an alcohol product being sold at Pak’nSave New Plymouth for an incorrect price," said spokesperson Emma Wooster, the following day. "As soon as we became aware, the relevant teams took steps and have corrected the price of the product."
"Selling a six pack of alcohol cheaper than a six pack of water in a socially deprived area is simply irresponsible on the part of any retailer." – Aupito William Sio, Associate Justice Minister
Associate Minister of Justice Aupito William Sio, who is responsible for reviewing the Sale and Supply of Alcohol Act, expressed his concern.
"On the face of it, selling a six pack of alcohol cheaper than a six pack of water in a socially deprived area is simply irresponsible on the part of any retailer, be it in-store or online," he told Newsroom.
"We have to always consider the social impact and implications of this sort of targeted and aggressive alcohol marketing and promotion."
The Government kicked off a review of the Sale and Supply of Alcohol Act in November last year, with a view to tightening controls – now this latest alcohol promotion has prompted calls to speed up the crackdown. "There's movement, but it not fast enough," says anti-addiction writer and community worker Lotta Dann. "$3.99 at Pak'nSave – just saying!"
Newsroom called Peter and Deb Melody, the owners of the store. They have previously filmed a promotional video asking their community to "shop local" and "support your local small business" to help through the past few years' downturn.
This weekend, they initially denied all knowledge of the discounted alcohol, and Foodstuffs' admission. Then they conceded that they were aware of it, and of the statement, and said they agreed with the statement.
The two were asked repeatedly – 13 times – whether they took any responsibility, socially or legally, for their company's actions. Each time, they refused to answer.
"You've been given a response and Foodstuffs has investigated the situation. And we are sticking with what Foodstuffs have responded to you," Peter Melody said.
Asked if Pak'nSave New Plymouth would face any action or penalty for the marketing promotion, he again did not address the question. "There's a fair bit going on at Foodstuffs at the moment with flooding."
(There have been no media reports of flooding in New Plymouth this weekend).
"They should be ashamed of themselves, offering dangerously cheap alcohol in the middle of a cost of living crisis when whānau are stressed and vulnerable." – Selah Hart, Hāpai Te Hauora
Did he think his community would be happy with his response? "As I said, we're sticking by what Foodstuffs has said to you, so that's it. This is the end of the conversation."
Melody terminated the phone call.
Selah Hart, chief executive of Hāpai Te Hauora, a Māori health promotion and harm prevention services provider, said it was disappointing to see the return of "irresponsible loss-leading on alcohol" as demonstrated by 67c beers at Pak'nSave. "They should be ashamed of themselves, offering dangerously cheap alcohol in the middle of a cost of living crisis when whānau are stressed and vulnerable," the Māori health leader said.
"In 2009 Foodstuffs and Progressive Enterprises voluntarily stopped loss-leading on alcohol in response to criticism that the practice promotes alcohol abuse. It appears they have decided to renege on this and promote profit over public health.
“When beer is more expensive than water, you can guarantee the retailer doesn’t have the best interests of their community at heart."
Communities Against Alcohol Harm spokesperson Nathan Cowie said they were disappointed, but not surprised, to see supermarkets continue to dump ultra-cheap alcohol into Taranaki and other communities.
"Selling a six pack of beer for just $3.99 is incredibly irresponsible – this is the same price the New Plymouth Pak'nSave charges whānau for a lettuce, a cauliflower, or a cabbage. You can't even get a decent steak and cheese pie for four bucks anymore, but a six pack of beers? No worries at New Plymouth Pak'nSave."
He said the ready availability of ultra-cheap alcohol was driving the development and maintenance of addiction. "The painful irony of ultra-cheap alcohol is that it comes at such a high price for our communities – from the trauma of family violence, sexual assault and disconnection, to the nuisance of noise, vomit, and broken glass in our homes and neighbourhoods."
"There will be many people walking in your store, who are either themselves struggling and trying to change, or have family, whānau members, workmates who are really struggling. Consider those people and do the right thing for them." – Lotta Dann, LivingSober
TV journalist Lotta Dann got sober aged 39 with the help of an anonymous blog published as a best-selling memoir, Mrs D Is Going Without. She manages the online community LivingSober.org.nz and facilitates workshops on addiction.
She says there are two problems with such aggressively discounted alcohol. First, it encourages binge drinking. "It's cheap, you get more, you drink more," she says.
Secondly, it normalises alcohol and suggests it's safe – that it's not a dangerous drug. "It's that message that it sends them, hey, this stuff is fine, it's harmless. It's cheap. Take it, we've got big signage here.
"And that isolates the people who are struggling, because it furthers this impression that everyone's having a great time with the stuff and you're the one who's not. And it's just not true. There are so many people struggling and we need to live in an environment that reflects the truth about this harmful drug."
She had a message for Peter and Deb Melody. "Could I just say to them, please consider the people in your community who are really struggling and really suffering because of this liquid.
"It's not just a fun time thing for everyone and there will be many people walking in your store, who are either themselves struggling and trying to change, or have family, whānau members, workmates who are really struggling. Consider those people and do the right thing for them."
Correction: A previous version of this article said Alan Melody was listed as an owner of the company. Alan Melody advises he has not been an owner of the company for six years.
