Nothing out of the ordinary, I know, but Morrisons selling various big name brands of spirits at £15 per litre at the moment.
If one considers the Bell's Whisky (40% ABV), 20% is VAT (to my knowledge VAT is calculated on the duty as well as the product itself). So excl. VAT is £12.50. The duty is £11.06 (the duty rate is £27.66 per 1% ABV per 100 litres - 27.66 * 40 /100 = 11.064).
So the price at the till of the underlying product is £1.44 per litre (ostensibly to cover production, marketing, shipping, storage, store costs and so on). Quite staggering really.
Not really - the focus was on the fact that @ £15 per litre, the actual product (i.e Bells Whisky in this case) excluding tax and duty comes to a grand total of £1.44 per litre (not much more than a pint of milk and probably cheaper than certain mineral waters).
Retailers sometimes run lines at slightly above cost, or even at cost, simply to attract customers into the store. They know that once people are inside they will more than likely make some impulse purchases.
It's that old thing called a loss leader. Aldi is particularly good at this.
Retailers sometimes run lines at slightly above cost, or even at cost,
simply to attract customers into the store.
The current £15/litre on a number of spirit brands is almost certainly marketing by Diageo as its in all the major supermarkets and appears regularly at holiday/celebration times of the year. Its a good opportunity to stock up if your that way inclined. After all saving around £7 on a litre bottle is worth it.