Grocery prices should not have to rise as a result of the environmental initiatives implemented by supermarkets, according to Asda chief executive Andy Bond.

Bond told The Guardian food retailers could save money by going green.

"The environment is absolutely fundamental but we think it will actually save money. I don't get why prices will have to go up. We won't be supporting any campaign to drive prices up."

Earlier this week, The Guardian reported that Tesco chief executive Sir Terry Leahy had said he was ready to raise prices to deliver "a revolution in green consumption".

Meanwhile, The Daily Telegraph reports that Asda parent Wal-Mart has dropped its "Always low prices" slogan for a new one, "Save Money, Live Better".

* In The Grocer tomorrow: Sir Terry Leahy calls on the government to help businesses go green.