Major UK Supermarkets Slash Prices on Aptamil Baby Formula in Response to Rising Costs
Source: The DairyNews
Several leading UK supermarkets, including Asda, Tesco, Sainsbury’s, and Morrisons, have followed in the footsteps of Iceland Foods by reducing the price of Aptamil baby formula by 7%.
This move is a response to Danone's recent 7% price cut for the majority of its baby milk range, which came after the Competition and Markets Authority (CMA) reported a 25% increase in baby formula milk prices over the past two years.
The CMA observed that competition in the sector was hindered as consumers were reluctant to switch brands, often influenced by recommendations from friends, family, or their baby's specific formula preference.
Iceland Foods was the first to announce a reduction in formula prices, and in August of the previous year, it declared plans to accept food bank vouchers, loyalty points, and gift cards for infant formula purchases. Iceland aimed to ease the financial burden on parents during the cost of living crisis by cutting formula prices by over 20%.
Asda is now reducing the prices of six Aptamil lines across its 'Core' range by an average of 7%. Customers can also utilize their 'Asda Rewards' scheme vouchers for in-store purchases of baby formula. Asda, emphasizing its commitment to passing on manufacturing cost reductions to customers, will continue working with manufacturing partners to reflect additional production cost decreases in product prices.
Kris Comerford, Asda’s chief commercial officer, stated, "We're taking swift action to pass on falling manufacturing costs to customers before any other retailer." Asda has also removed exclusions on using Asda Rewards vouchers for baby formula purchases, expressing a desire to assist families in managing their budgets during these challenging times.
The CMA observed that competition in the sector was hindered as consumers were reluctant to switch brands, often influenced by recommendations from friends, family, or their baby's specific formula preference.
Iceland Foods was the first to announce a reduction in formula prices, and in August of the previous year, it declared plans to accept food bank vouchers, loyalty points, and gift cards for infant formula purchases. Iceland aimed to ease the financial burden on parents during the cost of living crisis by cutting formula prices by over 20%.
Asda is now reducing the prices of six Aptamil lines across its 'Core' range by an average of 7%. Customers can also utilize their 'Asda Rewards' scheme vouchers for in-store purchases of baby formula. Asda, emphasizing its commitment to passing on manufacturing cost reductions to customers, will continue working with manufacturing partners to reflect additional production cost decreases in product prices.
Kris Comerford, Asda’s chief commercial officer, stated, "We're taking swift action to pass on falling manufacturing costs to customers before any other retailer." Asda has also removed exclusions on using Asda Rewards vouchers for baby formula purchases, expressing a desire to assist families in managing their budgets during these challenging times.
