Baby formula price cut helps new parents

A leading food and drink company is cutting the price on most of its baby formula milk products.

Manufacturing giant Danone is reducing prices on the majority of its Aptamil range to UK retailers by 7%, the BBC understands.

Iceland supermarket said the cuts would be reflected in its stores.

Last month, the Competition and Markets Authority (CMA) said formula prices had risen by a quarter over the past two years.

Three ranges of Aptamil will be reduced from £12 to £11.20 in Iceland stores from next week. These are the 800g products: Aptamil First Infant Milk, Aptamil Growing Up Milk, and Aptamil Follow-on Milk.

In a statement Danone said it recognised the challenges faced by parents due to inflation.

“During this difficult period, we have worked very hard to absorb the significant cost increases we have faced, make savings, and minimise any price increases,” the company said.

Richard Walker, executive chairman of Iceland Foods, said it was only right the supermarket reduced the price of the formula products further, given Danone had decided to lower its prices.

He said: “It’s important, however, that this doesn’t gloss over the actions which are still urgently needed to support families.

“While we support breastfeeding as the most beneficial way of feeding infants, the millions of families who rely on formula need more support for their choice or circumstances and simply reducing the price won’t solve the systemic issues we’ve drawn attention to.”

Danone is understood to want other manufacturers to follow suit.

Iceland has also called on the government to review Healthy Start vouchers, which are worth £8.50 a week for babies up to one year old.

These vouchers have not been increased in value since April 2021 and have fallen below the price of the cheapest formula after recent increases.

The CMA is investigating the baby formula market after finding it was vulnerable to higher than inflation price rises. Only one UK retailer, Aldi, sells its own brand.

The regulator found competition was hampered because shoppers were reluctant to switch brands, either because they were recommended by friends and family or because their baby would only drink one.

New parents could make significant savings of £500 in the first year of a baby’s life on formula milk products by shopping around, the CMA added.