Sir, Asda's ploy to undercut its competitors with its irresponsible Budweiser promotion not only flies in the face of the government's attempts to prevent supermarkets selling alcohol as a loss leader, but also puts pressure on thousands of independent stores across the country ('Landmark hits out as Asda for selling Bud 24-pack for £11', 15 October).

The FWD is concerned that some will turn to the growing grey market to source cheaper stock.

Recent government figures reveal that duty fraud on beer rose 45% to £800m in lost tax revenue in 2009-2010, and our wholesale members are aware that the illicit trade is targeting retailers with prices that cannot be achieved legitimately. HMRC now has both the powers and the resources to impose severe penalties on those who trade in non-duty-paid alcohol.

We urge retailers to stick with their wholesalers, and we ask the government to urgently put a stop to this deep discounting, which is a gift to smugglers and duty fraudsters.

James Bielby, CEO, FWD