Asda is urging its industry suppliers, including Heinz, Nestlé, and General Mills, to reduce their prices as it struggles to gain more customers amid the supermarket price war.

According to a report by The Telegraph, the supermarket retailer is allegedly pressuring some of its largest partners to cut down on their pricing as part of its recovery strategy, recently reporting a £600m loss in 2024.

Moving forward, Asda plans to hold meetings with its grocery suppliers led by the recently appointed chief commercial officer Darren Blackhurst. According to sources, Blackhurst is responsible for bargaining for a deal with suppliers that are not willing to adhere to Asda’s new terms.

An Asda source told The Telegraph: “A lot of suppliers have been supportive. Others are more reluctant. It is about sharing the load. Some just haven’t broken out of the four-week [temporary discount] promotion cycle.”

Asda competes with other retailers such as Tesco and Sainsbury’s, which are aiming to slash prices for consumers amid the rising cost of living. However, some suppliers expressed concerns over supporting Asda amid its financial challenges.

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An industry source said to The Telegraph: “The idea behind ‘rollback’ is that you get the volume moving first, and then you get suppliers to invest further. But what’s happened is that Asda has invested in rollback, and the volumes haven’t come through. The suppliers are holding back investment because they aren’t getting the guaranteed volumes they will need.

“There has to be something in it for them. If they are putting their money into Tesco and Sainsbury’s, then they are getting a return. If they are putting their money into Asda, then there is no guaranteed return. It is high risk.”

However, the supermarket giant is investing in keeping prices low to stay ahead of its industry competitors, recently reviving the That’s Asda Price campaign.

An Asda spokesman told The Telegraph: “The material investment we are making this year to lower prices has already made a difference by opening up a 3pc-6pc price gap over other traditional full-service supermarkets.”

Asda has been contacted for a comment.