The boss of Iceland has condemned unnecessary price hikes by infant formula brands as “exploitation” of new parents and joined calls for the government to introduce a price cap.
Iceland executive chair Richard Walker hit out in response to the damning evidence about manufacturers raising prices beyond the increase they had seen in input costs revealed by the Competition and Markets Authority (CMA) probe.
The report claimed that brands had increased their prices by far more than their cost during the inflation crisis, effectively widening their profit margins at the expense of the consumer.
This has resulted in an average increase of 25% for shoppers over two years.
“This is exploitation. We need this to stop immediately. This is a cost-of-living crisis,” said Walker on social media platform X.
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“Some people cannot afford to feed their babies. This is a real issue with real consequences and we need to do something about it.
“It now costs £14.50 for a week’s supply of infant formula. It’s crazy and I don’t know how some people can afford it. It’s a myth to say people should rely on breast milk which many can’t do.”
The Iceland boss urged the government should step in to enforce price controls on the product by assembling a roundtable of brands and retailers, adding: “It seems an obvious thing to do.”
Walker also highlighted the frozen-food specialist’s previous initiatives in ensuring baby formula remains affordable for shoppers.
“[This is why] we (illegally) have slashed the price of infant formula by 20% and are now selling it at cost,” the Iceland boss added.
