Danone Slashes Prices on Aptamil Baby Formula, Easing Financial Strain for New Parents
Source: The DairyNews
Danone, a leading food and drink company, is taking a significant step to alleviate financial pressure on new parents by reducing prices on the majority of its Aptamil baby formula milk products. The company plans to cut prices to UK retailers by 7%, with Iceland supermarket confirming that these reductions will be reflected in its stores.
The price cuts come in response to concerns raised by the Competition and Markets Authority (CMA), which reported a 25% increase in formula prices over the past two years. Danone's move is seen as an effort to address the challenges faced by parents dealing with inflation.
Three Aptamil products, including Aptamil First Infant Milk, Aptamil Growing Up Milk, and Aptamil Follow-on Milk (all 800g), will see their prices drop from £12 to £11.20 in Iceland stores starting next week.
Danone expressed awareness of the difficulties parents face and highlighted its efforts to absorb cost increases, make savings, and minimize price hikes during this challenging period. Iceland Foods' executive chairman, Richard Walker, welcomed Danone's initiative but stressed the need for broader systemic support for families beyond just reducing prices.
While supporting breastfeeding as the preferred method of infant feeding, Walker emphasized the importance of additional support for families relying on formula. He called on the government to review Healthy Start vouchers, currently worth £8.50 a week for babies up to one year old, as they have not been increased since April 2021 and have fallen below the cost of the cheapest formula following recent price hikes.
Danone is encouraging other manufacturers to follow its lead in reducing baby formula prices. The ongoing CMA investigation into the baby formula market aims to address issues of competition and affordability, as the regulator found consumers hesitant to switch brands due to recommendations or specific baby preferences. Danone affirmed its commitment to engage with the CMA investigation.
Three Aptamil products, including Aptamil First Infant Milk, Aptamil Growing Up Milk, and Aptamil Follow-on Milk (all 800g), will see their prices drop from £12 to £11.20 in Iceland stores starting next week.
Danone expressed awareness of the difficulties parents face and highlighted its efforts to absorb cost increases, make savings, and minimize price hikes during this challenging period. Iceland Foods' executive chairman, Richard Walker, welcomed Danone's initiative but stressed the need for broader systemic support for families beyond just reducing prices.
While supporting breastfeeding as the preferred method of infant feeding, Walker emphasized the importance of additional support for families relying on formula. He called on the government to review Healthy Start vouchers, currently worth £8.50 a week for babies up to one year old, as they have not been increased since April 2021 and have fallen below the cost of the cheapest formula following recent price hikes.
Danone is encouraging other manufacturers to follow its lead in reducing baby formula prices. The ongoing CMA investigation into the baby formula market aims to address issues of competition and affordability, as the regulator found consumers hesitant to switch brands due to recommendations or specific baby preferences. Danone affirmed its commitment to engage with the CMA investigation.
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