Asda has slashed the price of its exclusive label Champagne to £9.97 as the wine wars heat up ahead of the summer months.

The retailer grew wine sales by 4.9% in the past year (Kantar, year to February 2015) by selling more wine to existing shoppers, with a focus on high-profile deals.

But it is being outperformed by the discounters, where sales increased by 24% during the same period, and has launched a fresh round of deals as retailers fight for a greater share of a declining market.

Its Pierre Darcys Champagne has been reduced from £30 to £9.97 and has been scattered around stores on high-profile, freestanding display units.

It means it is now undercutting Aldi, which sells its Veuve Monsigny Champagne at £10 throughout the year, by three pence.

BWS category director Tracy Ford said: “Because we have a unique collaboration with our sourcing arm, IPL, it allows us to source at the best possible prices and quality that we can. Any savings that we generate we will pass on to consumers. We also have a good long-term relationship with wineries and growers, so where we can pass savings on to consumers, we absolutely will.”

It is also selling Jacob’s Creek Sangiovese for just £3. Further offers on branded wines include reds and whites from Lindemans, French Connection, Isla Negra and McGuigan reduced to just £4.  

Asda has also announced a complete review of its wine department, where it will cut its range by 8%, refresh its Extra Special and Winemaker’s Choice ranges and launch a new own-label range called Wine Atlas to give customers the chance to discover wines from lesser known regions across the globe.

The 17-strong new range is targeted at experimental shoppers and is priced between just £4.97 and £7.

It features wines from countries such as Romania and Hungary and lesson-known grape varietals from familiar countries such as France and Spain.

Ed Ashley, senior wine buying manager for Asda, said: “We’ve developed the new Wine Atlas range in response to a growing trend among customers to branch out and try new wines from more obscure locations, or grapes that they’ve never heard of before. This is one of the reasons we’ve seen a 14% year on year growth in wines from countries such as Hungary and Romania.

“Customers also tell us that they like to experiment with new wines when they’re on holiday, and want to re-create that experience at home, however they still look to us for help when it comes to making that new choice.

“I’m really proud of the Wine Atlas range as the team have scoured the globe to source some really unique wines, and I’m confident we’ve managed to pinpoint exactly what excites the nation and give customers something fresh and new that they won’t have seen before.”