Major baby formula producer set to cut prices in huge boost for UK parents

10 January 2024 , 12:21

814     0

Iceland is the first to say cuts would be reflected in its stores (Image: Getty Images)

Manufacturing giant Danone is cutting the price on most of its baby formula products.

Danone is set to reduce prices on the majority of its Aptamil range to UK retailers by 7%. The French firm, which also owns the Cow & Gate brand, accounts for 71% of the baby formula market in the UK.

Supermarket Iceland is the first to say cuts would be reflected in its stores, with three products being reduced from £12 to £11.20 in its stores from next week. The items are the 800g formulas, 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. A spokesperson said: "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."

Iceland chief Richard Walker said it was "only right" the supermarket reduced the price of the formula products further, given Danone had decided to lower its prices. Mr Walker added: "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."

Baby boy has spent his life in hospital as doctors are 'scared' to discharge him

Iceland has also called on the government to review Healthy Start vouchers, worth £8.50 a week for babies up to one year old. These vouchers have not been increased in value since April 2021. They have since fallen below the price of the cheapest formula after recent increases.

Charity the Food Foundation welcomed the news. Its senior business and investor engagement manager Rebecca Tobi said: "With levels of food poverty having skyrocketed during the cost of living crisis we know that there are very real risks to children’s health where families are struggling to afford formula. In the UK the baby formula market is dominated by four companies, Danone, Nestle, Kendamil and Hipp, and so we would hope to see the other three manufacturers move quickly to reduce their prices across all their first infant formula brands.

"Currently only Iceland have confirmed that this price reduction will be passed onto customers. We would hope to see other retailers swiftly following in Iceland’s footsteps." It comes as the Competition and Markets Authority said last month that formula prices had risen by 25% over the past two years after launching an investigation.

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 a particular one. It said new parents could make savings of as much as £500 in the first year of a baby's life on formula milk products by shopping around.

Danone has confirmed it will continue to engage with the CMA investigation.

Natasha Wynarczyk