In a move that has sparked a furious reaction from its suppliers, Bargain Booze has threatened to delist anyone that tries to offset the recent alcohol duty hikes by asking for an increase in retail prices.

The Grocer has learnt that this week Matthew Hughes, joint MD of the 600-strong Bargain Booze chain, wrote to suppliers informing them that it would "have to review the position of any brands where the retail ticket is increased in our business".

In the letter, he told suppliers he expected them to absorb the duty hikes rather than pass the cost on to consumers. "We regret to say we cannot absorb the increases in costs the Budget would seem to demand," he added.

Suppliers and rival retailers accused Bargain Booze of jumping the gun.

"This is the first we have heard of this. Everybody has adopted a 'wait and see' position so far," said one supplier. "We have already been absorbing increased costs in raw materials, packaging and transport.

"It would be surprising if retailers believed we could shoulder any more of the burden."

The move was branded a publicity stunt by one retail source. Another expressed surprise that Bargain Booze was making the deal explicit in writing, arguing that it was still too early to judge how the industry would react as many retailers had built up stocks in advance.

"Of course we all want to keep prices low, but I am not sure this approach with have much effect," said the retailer. "On a purely cynical note, Bargain Booze will feel the impact of the increases more than the multiples and c-stores because it only has the alcohol sector to rely on for margin.

"Other retailers can fall back on other categories and products. Publicity about being aggressive on price is quite helpful for it at this stage."

Many retailers, including Sainsbury's, continued to offer alcohol at pre-Budget prices over the Easter weekend.