Iceland Supermarket Reduces Aptamil Formula Prices After Danone's 7% Price Cut
Source: The DairyNews
Supermarket chain Iceland has announced a significant reduction in the cost of Aptamil infant formula following a 7% price cut by the manufacturer, Danone.
Starting January 16, Iceland will offer three 800g Aptamil lines—First Infant Milk, Growing Up Milk, and Follow-on Milk—for £11.20, down from the already competitive £12.
While retailers determine the shelf prices of products, Danone's willingness to reduce the price it charges supermarkets for Aptamil powdered formula by up to 7% has prompted Iceland to pass on the savings to consumers. The move is expected to set a precedent, with other supermarkets likely to follow suit.
The Competition and Markets Authority (CMA) recently highlighted a 25% increase in formula prices over the past two years, leading to an investigation into the baby formula market. The CMA identified vulnerability to inflationary price rises and limited competition, as only Aldi sells its own brand in the UK. The regulator noted that consumers could save up to £500 in the first year of a baby's life by shopping around for formula milk products, emphasizing the potential benefits of increased market competition.
While retailers determine the shelf prices of products, Danone's willingness to reduce the price it charges supermarkets for Aptamil powdered formula by up to 7% has prompted Iceland to pass on the savings to consumers. The move is expected to set a precedent, with other supermarkets likely to follow suit.
The Competition and Markets Authority (CMA) recently highlighted a 25% increase in formula prices over the past two years, leading to an investigation into the baby formula market. The CMA identified vulnerability to inflationary price rises and limited competition, as only Aldi sells its own brand in the UK. The regulator noted that consumers could save up to £500 in the first year of a baby's life by shopping around for formula milk products, emphasizing the potential benefits of increased market competition.
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