Aldi sign

Discount retailer Aldi has been named as the UK's grocer of the year at this week's Grocer Gold Awards, beating off competition from Morrisons and Wal-Mart owned Asda.

Taking place at the Dorchester Hotel in London, the ceremony also saw Aldi pick up the discounter of the year title, while Tesco picked up the Britain's Favourite Supermarket award - the only one voted for by consumers.

'Aldi's victory stands out because of the sheer strength of the competition,' said AdamLeyland, editor of event organiser The Grocer. 'With sales up more than 20 per cent, it's still a minnow in the UK, with estimated sales of £2bn versus the £120bn sales of the big four.

'But Aldi identified the gap in the market, forced the mighty Tesco to re-evaluate its offer, and even to change its strapline; it's set an agenda with it's single price promotions; and caused a lot of head scratching at the big supermarkets with its highly efficient cost base and its growing appeal to consumers despite a limited assortment of goods,' he added.

Asda picked up an award for price with Morrisons rewarded for availability and service, and Sainsbury's was handed the Consumer Initiative of the Year award for its 'Switch & Save' campaign.

'Tonight proved resoundingly that big isn't always best,' Mr Leyland noted. 'I wouldn't go so far asto say there's a new world order, but the credit crunch hasdestabilised the market, and created new opportunities. Combined with abit of good old fashioned entrepreneurialism, smaller companies canoutfox their larger rivals.'