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Old price points get smashed

The (UK) Times Online reports today,

Supermarkets selling alcohol cheaper than water

Research has found that it costs less to quench your thirst with alcohol than bottled water at leading supermarkets. Discounted own-brand alcohol is sold for as little as 23p per can, according to the drink and drug charity Addaction. This research comes on the eve of Government plans to tackle binge drinking.

I wonder where this product fits in the value proposition?

Does this mean that water is ridiculously expensive or that booze is incredibly cheap? Well, both. Competition among shops and supermarkets has led to alcohol prices that average 8% less than the recommended retail price. Some items, especially generic “value brands” are as much as 40% below retail. And, the research found that when alcohol is considered as a proportion of income, it is almost 70% more affordable today than it was 1980.

So go ahead and cry in your beer, just don’t weep in the water.