The Competition Commission has cleared supermarkets of any wrongdoing in selling alcohol below cost. The 18-month inquiry into the groceries market has ruled out a ban on selling alcohol as a loss-leader.

Pubs will also not be pleased to hear the inquiry has recommended a change in planning laws to allow more supermarkets to be built to provide consumers with more choice in certain areas.

It said: “Below-cost selling by national retailers is not part of a predatory strategy aimed at convenience stores or specialist stores and is not having significant unintended effects on smaller stores.”

Although the result is a disappointment for the trade, the inquiry has helped intensify the pressure on the supermarkets and brought the fight into the public eye. Evidence given revealed that the big four – Sainsbury’s, Tesco, Asda and Morrisons – sold £112.7m of beer, wines and spirits below cost in the World Cup period last year.

All hopes now rest with the Government’s inquiry into alcohol pricing and promotions, which is expected to kick off in October and report by April 2008.

The final report is due to be published in March 2008.