Three-for-£10 finally axed by Asda

17 January, 2014

Asda has axed its controversial three-for-£10 wine promotion after admitting it had become impossible to maintain quality and deliver profit.

The price has been central to the retailer’s strategy since it was introduced in 2007, sparking copycat offers across the trade.

But BWS category manager Tracy Ford said Asda had permanently dropped the offer from this month and introduced a new portfolio of wines priced at £3, £3.50 and £4 to fill the gap.

She told OLN: “Although we have moved away from three- for-£10, I’m still conscious we have customers who are looking for great value wine, so we have introduced an everyday low price offer. Our customers won’t be disappointed but it gives us the flexibility to be able to react to things that come down the line, such as tax and duty.

“Two to three years ago, customer participation with three-for-£10 was really high but with all the work we’re doing to educate consumers and expand the ranges, that has decreased.

“Also the quality of the wine had decreased because of duty and we felt the time was right to move away.

“We stopped three-for-£10 three years ago and didn’t give consumers an alternative – we just took it off – so we had to bring it back.

“But now there’s a different offer. To an extent we were making people pay £10 before.”

Ford added that although Asda has shelved the promotion it remained committed to other long-standing deals it believed consumers expected.

She said: “Our strategy is not to do the high-low promotions, but to be honest and transparent because consumers can be conned.

“You won’t see us doing half-price deals.

“At certain times of the year we will invest our own money in Asda’s iconic prices, such as £10 Champagne at Christmas. But we are trying to keep the strategy gimmick-free.”

A leading supplier said it was a step in the right direction. He said: “Because of all the taxes, the quality of the wine in three- for-£10 was getting lower. The promotion was unsustainable. It will be interesting to seeing how shoppers react.”

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