The ads, which broke this week and run until 21 December, highlight that by shopping at Budgens consumers can help support their local producers and their local store.
A number of Budgens deals will feature, including better-than-half-price offers on wines and Champagnes and half-price offers on gammon joints, smoked salmon, British beef and British pork.
The ad uses a Victorian-style puppet theatre with the strapline 'All Star Budgens Christmas'. Budgens staff also feature in the ads.
"The Budgens team has developed an excellent campaign that will build awareness of the Budgens brand, reinforcing messages to existing shoppers and introducing a whole new audience to our retail partners' stores," said sales director Dan Quest.
"Being able to feature some of our actual retail partners reinforces how the consumer can support truly local businesses through strong partnership with our independent retailers."
Last week Booths launched an ad campaign for the festive season its second TV campaign in two years. Nisa-Today's is also planning to launch its first TV ad on 27 December.