14 January 1999
Asda to boost British goods

ASDA, the Yorkshire-based supermarket chain, is to take no profit on some items of British farm produce in a bid to boost customer demand.

It is also to extend its grower “cost-plus-profit” contractual arrangements from potatoes to other produce, including pork.

The retailer announced a series of new support measures to back Britains beleaguered farmers today (Thursday) at a summit meeting with 350 producers.

Key moves will include addressing concerns that supermarket specifications are too restrictive by accepting a wider range of many products, such as apples and lamb.

All rhubarb, Bramley apples and key offals, like kidney, liver and heart, will be sold profit-free in a bid to reverse declining demand.

And the firm plans to extend its British-only policies from fresh meat to include frozen pork and beef and fresh and UHT milk.

In addition to these measures, the supermarket is also to introduce a new “British for Freshness” logo, giving shoppers a reason to buy British.

It also plans to more than double its spend on British meat and produce advertising, from £4 million to £9m.

“We are staunch supporters of British farmers,” said Asda chief executive Allan Leighton.

  • Asda denies profit cuts are smokescreen, FWi, today (14 January, 1999)