Asda has raised the in-store price of four pints of milk for the first time in a year and a half.
At the same time, the retailer has announced it will be moving to 100% British milk for all its own-label yoghurts by April 2017.
Now retailing at 95p – up from 89p – Asda’s own-label four-pinters are at their highest price point since January 2015, when the retailer dropped its price from £1 [BrandView.com].
Asda said it had decided to increase the price on four-pinters to be able to bring down the price of other dairy lines. “We have introduced a small increase to the price of our own-label four pint milk to 95p, which has enabled us to invest in lowering the price of organic and Cravendale milk as well as the price of own-label British Cheddar,” a spokeswoman said. “These changes are part of an investment back into the dairy sector, while also giving our customers even better value for money options.”
The price increase on four-pinters – which are the best-selling milk SKU – will raise hopes among embattled dairy farmers that the bitter supermarket milk price war that’s characterised the UK groceries market for the past few years could be starting to ease. Despite retailer assurances that in-store prices and promotions are not linked to prices paid to farmers, cheap milk deals have raised the heckles of farmers, who have suffered falling farmgate milk prices in the wake of a downturn in global dairy commodities market and record milk production.
Most recently, a £2 for 12 pints offer from Morrisons has come under fire, while the National Farmers Union this week also spoke out against cheap milk deals at Farmfoods and Booker.
Despite this week’s price increase, Asda’s milk remains the cheapest of the big four. Own-label four-pinters currently retail at £1 at Tesco, Sainsbury’s and Morrisons, with Waitrose also charging £1. Ocado is a fraction cheaper at 99p, while Aldi, Lidl and Iceland charge 89p.
100% British yoghurt
Asda today also said all its own-label yoghurts will be made with British milk come April 2017. Most of its own-label yoghurts were already British-made, the spokeswoman said, but the retailer had now committed to moving the remainder to British milk by next April.
“Asda’s roots are in dairy farming, which is why we are fully committed to supporting the dairy industry and why it’s our policy to source British products first,” she said. “All our fresh milk is Red Tractor approved and carries the Arla Farmer’s Marque, and our own-label butter and British cheese ranges use British milk.”
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