Cross‐promotional alcohol discounting in Australia's grocery sector: a barrier to initiatives to curb excessive alcohol consumption?

Abstract Objective: Excessive alcohol consumption is an increasing issue internationally. Pricing strategies, including discount restrictions, have been identified as one of the most effective policy means by which to reduce heavy alcohol consumption. In Australia, cross‐promotional alcohol discount...

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Main Authors: Jonathan L. Wardle, Sungwon Chang
Format: Article
Language:English
Published: Elsevier 2015-04-01
Series:Australian and New Zealand Journal of Public Health
Subjects:
Online Access:https://doi.org/10.1111/1753-6405.12291
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author Jonathan L. Wardle
Sungwon Chang
author_facet Jonathan L. Wardle
Sungwon Chang
author_sort Jonathan L. Wardle
collection DOAJ
description Abstract Objective: Excessive alcohol consumption is an increasing issue internationally. Pricing strategies, including discount restrictions, have been identified as one of the most effective policy means by which to reduce heavy alcohol consumption. In Australia, cross‐promotional alcohol discounts are increasingly used by supermarket chains as a marketing tool. The purpose of the present study is to provide preliminary data on the nature and extent of cross‐promotional alcohol discounting in the Australian grocery sector. Methods: A purposive sample of 34 supermarkets in Australia's three largest cities was selected and minor grocery purchases made to uncover the prevalence and level of cross‐promotional alcohol discounting. Results: Cross‐promotional ‘bundled’ discounts were very common with 33 of the 34 supermarkets offering a ‘two for one’ discount on bottles of wine. Even with minor purchases (mean purchase $1.35), the mean value of discounts received was substantial ($16.23). Conclusions: These results appear to be consistent with claims that major supermarket chains are using alcohol discounts as loss leaders to entice new consumers. Implications: These strategies are antithetical to public health strategies aimed at reducing excessive alcohol consumption. Further examination of the impact of major retailers on public health initiatives is warranted, particularly in light of increasing retailer concentration.
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spelling doaj.art-ef7a43da3cbd4e99a6f7f273087dad482023-09-03T01:16:56ZengElsevierAustralian and New Zealand Journal of Public Health1326-02001753-64052015-04-0139212412810.1111/1753-6405.12291Cross‐promotional alcohol discounting in Australia's grocery sector: a barrier to initiatives to curb excessive alcohol consumption?Jonathan L. Wardle0Sungwon Chang1Faculty of Health University of Technology Sydney New South WalesFaculty of Health University of Technology Sydney New South WalesAbstract Objective: Excessive alcohol consumption is an increasing issue internationally. Pricing strategies, including discount restrictions, have been identified as one of the most effective policy means by which to reduce heavy alcohol consumption. In Australia, cross‐promotional alcohol discounts are increasingly used by supermarket chains as a marketing tool. The purpose of the present study is to provide preliminary data on the nature and extent of cross‐promotional alcohol discounting in the Australian grocery sector. Methods: A purposive sample of 34 supermarkets in Australia's three largest cities was selected and minor grocery purchases made to uncover the prevalence and level of cross‐promotional alcohol discounting. Results: Cross‐promotional ‘bundled’ discounts were very common with 33 of the 34 supermarkets offering a ‘two for one’ discount on bottles of wine. Even with minor purchases (mean purchase $1.35), the mean value of discounts received was substantial ($16.23). Conclusions: These results appear to be consistent with claims that major supermarket chains are using alcohol discounts as loss leaders to entice new consumers. Implications: These strategies are antithetical to public health strategies aimed at reducing excessive alcohol consumption. Further examination of the impact of major retailers on public health initiatives is warranted, particularly in light of increasing retailer concentration.https://doi.org/10.1111/1753-6405.12291alcoholbundled discountsretail salesalcohol promotionpublic health
spellingShingle Jonathan L. Wardle
Sungwon Chang
Cross‐promotional alcohol discounting in Australia's grocery sector: a barrier to initiatives to curb excessive alcohol consumption?
Australian and New Zealand Journal of Public Health
alcohol
bundled discounts
retail sales
alcohol promotion
public health
title Cross‐promotional alcohol discounting in Australia's grocery sector: a barrier to initiatives to curb excessive alcohol consumption?
title_full Cross‐promotional alcohol discounting in Australia's grocery sector: a barrier to initiatives to curb excessive alcohol consumption?
title_fullStr Cross‐promotional alcohol discounting in Australia's grocery sector: a barrier to initiatives to curb excessive alcohol consumption?
title_full_unstemmed Cross‐promotional alcohol discounting in Australia's grocery sector: a barrier to initiatives to curb excessive alcohol consumption?
title_short Cross‐promotional alcohol discounting in Australia's grocery sector: a barrier to initiatives to curb excessive alcohol consumption?
title_sort cross promotional alcohol discounting in australia s grocery sector a barrier to initiatives to curb excessive alcohol consumption
topic alcohol
bundled discounts
retail sales
alcohol promotion
public health
url https://doi.org/10.1111/1753-6405.12291
work_keys_str_mv AT jonathanlwardle crosspromotionalalcoholdiscountinginaustraliasgrocerysectorabarriertoinitiativestocurbexcessivealcoholconsumption
AT sungwonchang crosspromotionalalcoholdiscountinginaustraliasgrocerysectorabarriertoinitiativestocurbexcessivealcoholconsumption