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Asda to save 13m by reducing own label packaging

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Asda’s campaign to reduce its own-label food packaging will result in the retailer saving 13 million.

The 12-month program was launched in March, and Asda has said that all the money saved will be reinvested in price cuts.

Asda spokesperson Dominic Burch said: "Every product at some point undergoes a product review and we have introduced a packaging review into that process."

This review process has enabled Asda to 'get its house in order' and has resulted in innovative ideas, some of which customers won’t necessarily have noticed said Burch.

The thickness of salad bags has been reduced by 15%, while the amount of glass in coffee jars is down by 30%. All organic produce is now packaged using paper pulp trays and degradable netting.

At its Southport branch, Asda is currently trialling selling fruit and vegetable loose rather than pre-packaged. If this idea proves a hit with customers and is good for business then the scheme maybe be launched elsewhere, said Burch.

The UK's second-biggest supermarket is also looking to reduce the amount of packaging in its own-label non-food products including the George clothing range and electrical goods.

By June 2008, the company is confident that this programme will also have made a 25% saving in costs.

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