Asda offending vendors?

Asda (Wal-Mart's problem child in the UK) is launching a new format called Asda Essentials (hmm, what is it with "essentials"? -- Sears just killed theirs). The stores will carry limited selection, and will be 95% private label. The article in The Telegraph said that Asda was risking offending some vendors (including Pepsi) by not including them, but I don't think the risk offending vendors is something that will keep Wal-Mart awake at nights.