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EXCLUSIVE: Asda launches wholesale offer for independent retailers including new 'Asda Convenience' format. Trials of the partnership are underway with a convenience chain in the Glasgow area Asda is to begin wholesaling to independent retailers that adopt its new 'Asda Convenience' store format. Records uncovered by Better Retailing reveal the supermarket is already trialling the brand and partnership with One O One, a chain of around 50 convenience stores in the Glasgow area. One O One opened three Asda Convenience stores between four and six weeks ago, each stocking extensive grocery ranges powered by Asda own-label products. A rollout to more One O One stores is also being considered. In an exclusive interview with Better Retailing, Joseph Sutton, Asda's Express, fuel & wholesale director, said: "It's a massive opportunity for Asda to combine features like great own label, extensive fresh access, a broad range overall and really good pricing with a selection of independent retailers who run great shops." The early results from the model, which aims to attract "small-supermarket missions", are promising. Asda told Better Retailing the pilot stores are up 20% like for like, driven by increases of more than 100% in food to go and chilled grocery. Meanwhile, tobacco and alcohol sales are "broadly flat". "The early signs are exactly what we wanted," Sutton said. £2m investment. Paul Stirling, group retail director at One O One, said the partnership combines the convenience chain's local trust and knowledge with Asda's "exceptional value, market-leading own-brand range and strong customer proposition". Sutton revealed Asda will have invested "over £2m" in the project by the end of the year. It is drawing on the experience and operational strength it has built supplying nearly 600 Asda Express stores. The project is also being supported by a new team including Asda head of wholesale Martin Hill, who has experience building franchise estates at both One Stop and Morrisons. Asked about Asda's ambitions, Sutton responded: "In the next 18 months, our ambition is to be partnered with at least three groups that are comparable to One O One. The overarching goal is to bring the Asda brand to hundreds of independent shops." Asda's offer to stores. Asda's new "wholesale supply model" sits somewhere between a franchise and symbol agreement. Like a franchise, there will be audits, maximum prices on Asda own-label products, Asda-branded collateral and close collaboration with the supermarket. But, like a symbol agreement, retailers will be able to set their own prices and ranges and work with complementary external suppliers. Floorplans and a Better Retailing visit to one of the first One O One Asda Convenience stores revealed features including a parcel storage room, Costa Express machine, reverse vending machine and hot food-to-go counter. Asked about retailers' freedom to bring in offers from other suppliers, Sutton said Asda had encouraged One O One's use of McGhee's Bakery and its coffee offer. "We believe the more reasons to visit a convenience store the better," he said. "If over a 10-year period you're trying to replace the traffic of cigarette sales, you need to generate new missions. We're onboard with what can be helpful on this." Value a key selling point for retailers. In its company-owned Asda Express estate, the supermarket claims to offer the best prices in the convenience market. Sutton said value would also be a key selling point for independent retailers. "I'd say where I think there's quality own-brand out there in the convenience market, it attracts quite a big premium," he said. "That's where I think Better Retailing has an opportunity - the value of Asda in a convenience format. "It won't be the same as a 50,000sq ft superstore, but value and how that's seen with our brand will be an important part of growing our wholesale business." Although Asda Convenience does not currently include Asda Rewards, Sutton suggested it was likely to follow, subject to "tech work and integrations". He said Asda could also offer independents benefits beyond its strengths in own label, fresh food and pricing. "On things like coffee and relationships with the big aggregators for [grocery delivery platforms], it's a big opportunity," he said. "[Grocery delivery platforms] are more set up to deal with big corporates than independents - Better Retailing can help with that. "We can also consolidate volumes on things like hot foods and pastries - areas that independent retailers can struggle with in terms of clout." What Asda wants. Asked to describe Asda's ideal independent retail partner, Sutton replied: "They run a great shop and are really sound operationally. It's someone looking at their business and recognising that they want and need to expand more into fresh food, core grocery and own label. "Those motivated by this will be a happier marriage than those looking for a purer impulse-type offer." While the smallest of the One O One test sites is 1,800sq ft, Asda believes the model will generally appeal to stores at "the higher end of the scale for convenience store size". Initially, Asda is also looking to work with operators with at least 20 stores. "That's not a criticism of smaller or single-site operators," Sutton said. "We're just not at a stage where we have the resource or huge field teams needed to service these operators at scale. That's not to say we won't have that in the future." Asda approaching the independent sector 'collaboratively' With chilled own-label a structural weakness in independent convenience, many wholesalers are seeking supermarket supply partnerships. Asked whether Asda would be open to such arrangements, Sutton confirmed it had already been approached by wholesalers. "Franchise is our biggest priority and whatever else we decide to do, we'd be mindful that it shouldn't impact that," he said. "But a lot of the capability Better Retailing is building just allows Better Retailing to sell the product externally to another business. "At its very highest level, there'll be plenty of opportunities. It's just making sure that they're meaningful enough for us and we can add value. I wouldn't say anything is off the table." While Asda has clear criteria for potential partners, Sutton stressed that the supermarket was approaching the independent sector collaboratively and was willing to learn from retailers and competitors. "We're approaching this with a lot of respect for the market," he said. "That means acknowledging the high quality of its competition and very good independent retailers. "It's not a big supermarket arrogantly going into the market. What we're looking to find is how we can add value for independent retailers."

Asda develops new breakfast cereal for donation to Alliance Food Sourcing and Felix. Asda is donating almost 200 tonnes of breakfast cereal as part of its partnership with Alliance Food Sourcing and Felix, the UK's largest food redistribution charity, as the retailer supports families facing food insecurity over the summer holidays. The donation will see Asda provide a newly created cereal made from its own-label porridge oats and muesli, ensuring a steady supply of a key cupboard staple to households in need. The cereal is being produced and packed during quieter hours at Asda's Talford factory, before being redistributed nationally via Felix's own depots and its 16 independent network partners. In a survey by Felix of 4,000 working families, nearly 1 in 10 people say they have to send their children to school knowing they are hungry, at least once a week. The project forms part of the wider work of Alliance Food Sourcing, which brings together major UK food businesses to redirect surplus food and resources into charity supply chains. Earlier this year, Asda and its wholly owned subsidiary IPL donated 420 tonnes of fresh fruit and vegetables - the equivalent to around one million meals - to The Felix Project. Max Hilliard, Managing Director of IPL Operations at Asda, said: "Too many families are facing the reality of children going without a proper breakfast, particularly during the summer holidays when household budgets come under greater pressure. Through this donation, Grocery Trader can help ensure fewer families have to go without a proper breakfast. "We're proud to be working alongside Alliance Food Sourcing and Felix, using our own-label products and manufacturing capacity to create a breakfast cereal specifically for redistribution to ensure good food reaches vulnerable communities rather than going to waste." Charlotte Hill OBE, CEO of Felix said: "Sadly it's not only during term time that families are unable to afford a good breakfast, we know that during the holidays many parents are faced with further financial pressures. With schools closed children have no access to breakfast clubs or free school meals so parents have to pay extra to cover those meals. This support from Asda to AFS and Felix will ensure thousands of children get a healthier and balanced breakfast helping them to kickstart their day in the right way." Nicky Robinson, Director of Alliance Food Sourcing said: "A huge thank you to Asda for adapting their processes, to turn factory downtime into a good breakfast for people who most need it. It will be enjoyed and appreciated across the UK. Often relatively small changes in the UK food supply chain can make a big difference to what we can offer frontline charities." Asda is the only supermarket that offers kids eat for £1 in it's cafes, with no minimum spend requirements or adult purchase needed. This deal is valid all day, seven days a week, all year round. The menu includes dishes such as fish fingers, all-day breakfast, chicken nuggets and jacket potatoes. Kids can choose from either a hot or cold meal, with the cold meals coming with a piece of fruit.