Asda launches own-label beer and cider range to take on big brands
Asda has launched a range of own-label beers and ciders, produced by well-known craft producers, into all its stores that are very competitively priced and pitched up against the big branded players.
Ryan Truswell, buying manager of cider, craft beer and RTD Cocktails at Asda spoke exclusively to The Retail Bulletin about the importance of this move for the company as it seeks to build its market share in the UK through innovative initiatives.
Subscribe to TRBThe launch might also lead to a unique situation whereby retail and the on-trade (pubs and bars) work together. This would potentially involve some of the new range being stocked on draught in the pubs of the country’s largest operator, Stonegate Group (with over 4,000 pubs), which is owned by the same private equity owner as Asda, TDR Capital.
“It we are able to tie-in with Stonegate then it would be quite a big deal. Darren [Blackhurst, CCO of Asda] is on-board with this…if Asda is to regain its number two spot in UK grocery then you’ve got to think outside of the box. Think differently.” says Truswell.
The range has been launched under the new brand name of Asquith 1965 and comes in 440ml cans with the initial portfolio comprising: Break the Cycle session IPA (brewed by Kirkstall Brewery); Session Best Bitter (Ossett Brewery); 1965 Premium Lager (Damm Brewery); Stormy Maine New England IPA (Garden Brewery); Keep Rollin’ hazy pale ale (Garden Brewery); Irish Nitro Stout (Siren Brewery); and Orchard Cider (Westons Cider).
“We want to grow the beer category and challenge the big brands. The Asquith beers are priced affordably because there is no ‘brand tax’. It’s more and more difficult to make money on branded beers because you are paying for their [the major producers’] branding and marketing,” he suggests.
Each beer comes in a four-pack at £5 or a 10-pack at £10 apart from the Nitro Stout that is packaged in an eight-pack at £10 and have hit the whole of the Asda estate in the past few days. Truswell says the results have been positive so far and that the beers will be given a “big internal push” including a gondala end in all stores throughout Q4. “For an own-brand this is all daring and exciting,” he says.
The launch has involved Truswell and his team working closely with the producers. Simon Warren, off-trade business unit controller at Westons Cider, says: “We’re pleased to have worked with Asda to create something exclusive for its customers. Bringing together the heritage of the Asquith name with our experience of crafting cider from fresh-pressed apples, we believe this is an exciting addition to the category and one that offers shoppers something a little different, which is quality cider at an own-label price point.”
He adds that that the Asquith cider complements the company’s existing range by offering shoppers another premium choice in a can format, which provides value to shoppers. “By offering a premium-quality cider at own-label value, Asquith provides an accessible entry point for shoppers who don’t currently buy cider. This will help recruit new consumers into the category, driving incremental sales,” says Warren.
There are likely to be further products launched under the Asquith range, according to Truswell, who says an obvious addition would be a no/low lager and possibly a beer and stout. Another likely candidate would be a fruit cider.
Warren adds: “We’ve always valued working closely with our retail partners and are happy to explore new opportunities where we can bring our cider making expertise to create something that meets the needs of their customers.”
