Asda, the Walmart-owned supermarket, has pledged not to sell alcohol below the cost of duty plus VAT. In a letter to Theresa May, the Home Secretary - Andy Clarke, Asda’s chief executive, said yesterday: “I see this as a small but important first step in the process towards creating a new way of selling alcohol in the UK.” The retailer has also called on the industry to establish a "floor price" for alcohol, below which it would be illegal to sell. It said its policy, which came into effect on Tuesday July 20, applies to over 99% of the alcohol it sells. But, store managers are still able to set alcohol prices for damaged or end-of-range products. In May, Tesco said it was prepared to back the introduction of a minimum price for beer, wine, alcoholic cider and spirits, in response to government proposals designed to combat binge drinking and anti-social behaviour. Morrison’s has said it does not sell alcohol below cost price and added it is ready to discuss an industry-wide commitment on the practice. Sainsbury’s has also said it does not sell below cost price – but claimed there is no reliable evidence that minimum pricing would tackle the problem of binge drinking.