UK – Major UK supermarkets, including Asda, Tesco, Sainsbury’s, and Morrisons, have followed Iceland Foods in cutting the price of Aptamil baby formula by 7%.
This move comes after Danone, the manufacturer of Aptamil, reduced the price it charges retailers for most of its baby milk range by 7%.
The decision is in response to concerns raised by the Competition and Markets Authority (CMA) about a 25% increase in baby formula prices over the past two years, hindering competition as consumers are reluctant to switch brands.
Iceland Foods had initially taken the lead in announcing a price decrease and also made headlines in August 2023 by planning to illegally accept food bank vouchers, loyalty points, and gift cards for infant formula purchases.
The supermarket cited the cost of living crisis and the impact of rising formula milk prices on parents as the reasons for the price cut.
Additionally, Iceland urged the UK government to update existing legislation to allow retailers to inform the public when they lower the price of formula.
Asda is implementing the price reduction across six Aptamil lines in its ‘Core’ range, with an average reduction of 7%.
Customers can now use Asda Rewards scheme vouchers to pay for any baby formula products they purchase in-store.
Asda aims to collaborate with manufacturing partners to reflect any additional decreases in production costs at lower prices for customers.
Kris Comerford, Asda’s Chief Commercial Officer, emphasized the importance of making baby formula affordable for families and highlighted the swift action taken by Asda to pass on falling manufacturing costs to customers.
“At the same time, we’ve decided to remove exclusions on using Asda Rewards vouchers to pay for baby formula. Whilst we respect the regulations in place regarding the sale of baby formula, we want to do everything we can to help families manage their budget and keep their family fed.”
The decision aligns with regulatory concerns about pricing in the baby formula market and aims to address the needs of families in managing their budgets amid cost pressures.
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