Asda and Tesco join Iceland in cutting cost of Aptamil baby formula
Source: The DairyNews
Major UK Supermarkets Slash Aptamil Baby Formula Prices in Response to Manufacturer's Agreemen, writes The DairyNews.Today
Asda and Tesco have followed Iceland's lead in reducing the prices of Aptamil baby formula, following a 7% price cut agreed upon by the manufacturer, Danone. As part of this initiative, Asda will now allow customers to use their rewards scheme vouchers to pay for baby formula for the first time.
Iceland had previously announced a reduction in the cost of Aptamil from January 16 after Danone's agreement to lower the wholesale price of its Aptamil powdered formula to retailers by up to 7%. While the shelf prices are determined by retailers, it is anticipated that other supermarkets will also implement similar reductions.
Addressing the significance of affordable baby formula for many families, Kris Comerford, Asda's Chief Commercial Officer, stated, "For many of Asda’s customers, and families nationwide, we understand that buying baby formula is a vital necessity in their weekly shop."
Asda plans to decrease the prices of six Aptamil products, with most experiencing an average reduction of 7%. Five core Aptamil items will see their prices drop from either £14.50 or £14 to £13.50, and Aptamil Advanced 1 First Formula Baby Milk Powder from Birth will decrease from £19 to £18.
Similarly, Tesco is set to lower the prices of five Aptamil products by amounts ranging from 80p to £1 starting from Tuesday.
Kris Comerford emphasized Asda's commitment to passing on manufacturing cost savings promptly to customers and announced the removal of exclusions on using Asda rewards vouchers for baby formula purchases. This step aims to support families in managing their budgets and ensuring their nutritional needs are met.
The Competition and Markets Authority (CMA) recently reported a 25% increase in formula prices over the past two years and is currently investigating the baby formula market due to its susceptibility to inflationary price hikes. The CMA encourages new parents to explore different options, potentially saving up to £500 in the first year of a baby's life on formula milk products.
Iceland has also urged the government to review Healthy Start vouchers, currently valued at £8.50 per week for babies up to age one, as they have not seen an increase in value since April 2021 and no longer cover the costs of even the cheapest formula after recent price adjustments.
Iceland had previously announced a reduction in the cost of Aptamil from January 16 after Danone's agreement to lower the wholesale price of its Aptamil powdered formula to retailers by up to 7%. While the shelf prices are determined by retailers, it is anticipated that other supermarkets will also implement similar reductions.
Addressing the significance of affordable baby formula for many families, Kris Comerford, Asda's Chief Commercial Officer, stated, "For many of Asda’s customers, and families nationwide, we understand that buying baby formula is a vital necessity in their weekly shop."
Asda plans to decrease the prices of six Aptamil products, with most experiencing an average reduction of 7%. Five core Aptamil items will see their prices drop from either £14.50 or £14 to £13.50, and Aptamil Advanced 1 First Formula Baby Milk Powder from Birth will decrease from £19 to £18.
Similarly, Tesco is set to lower the prices of five Aptamil products by amounts ranging from 80p to £1 starting from Tuesday.
Kris Comerford emphasized Asda's commitment to passing on manufacturing cost savings promptly to customers and announced the removal of exclusions on using Asda rewards vouchers for baby formula purchases. This step aims to support families in managing their budgets and ensuring their nutritional needs are met.
The Competition and Markets Authority (CMA) recently reported a 25% increase in formula prices over the past two years and is currently investigating the baby formula market due to its susceptibility to inflationary price hikes. The CMA encourages new parents to explore different options, potentially saving up to £500 in the first year of a baby's life on formula milk products.
Iceland has also urged the government to review Healthy Start vouchers, currently valued at £8.50 per week for babies up to age one, as they have not seen an increase in value since April 2021 and no longer cover the costs of even the cheapest formula after recent price adjustments.
