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Asda campaign both worthy and smart

Posted in Advertising, Latest reporters' blogs, Russell Parsons March 14th, 2008 by Russell Parsons

This week has been an enlightening one for yours truly. In addition to consuming the news as it happens I have learned that certain food types in the UK are considered ‘essential’ and are therefore not subject to any VAT.

What is an even bigger revelation to me is that milkshakes, frozen pizzas and chips are considered ‘essential’ whereas healthier smoothies and 100 per cent fruit juices are taxed at the standard 17.5 per cent.

Shocked and appalled as I was at this fact, I was interested by the reaction of those good corporate citizens Asda, which this week launched a campaign to get the government to reduce VAT on smoothies and 100 per cent fruit juices from 17.5 per cent to five per cent.

Let me first say, I do not think for a second that the Wal-Mart-owned supermarket’s intentions are sinister. Any campaign which would ultimately lead to healthier drinks being as cheap as less healthy foodstuffs has to be applauded.

All I will add, is Asda’s move may also prove to be a PR masterstroke, positioning the supermarket as a campaigning company which has the health and well-being of the nation close to its heart, which it no doubt does.

Retuning to matters tax, Alistair Darling this week took the much anticipated step of above-inflation tax increases on just about all kinds of alcohol. Particularly surprising was his ending of a 10 year freeze on spirit duty by adding 55 pence a bottle.

This should put an end to those scotch and cognac binge-drinking teenage tearaways!