Asda is cutting out the middleman and creating a UK bottling facility, as it switches to a direct sourcing model for the majority of its own-label wine.

Over 2011, the retailer will extend the remit of its existing food procurement business IPL to source wines. Walmart acquired IPL in October 2009, but it has to date only sourced food for the retailer.

Asda will now start using its existing international network to source Asda wine direct from producers, creating 23 new jobs. Five of those roles will be at Snetterton in Norfolk, where Vinpack is building a bottling facility to supply Asda. This will reduce the number of shipping containers for Asda wine by 40%, the retailer claimed.

"Not only is the new model good for the environment, by cutting costs we will be able to deliver first-class wine to our customers at great prices," said Adrian McKeon, category director for BWS.