The Competition and Markets Authority (CMA) is set to scrutinise the baby formula market as the watchdog’s CEO said prices remain “at historically high levels”.
The investigation will look at baby formula, including those labelled by manufacturers as good for special medical purposes such as ‘anti-reflux’ and ‘comfort’, with a full report set to be published in September.
It follows a CMA investigation late last year on branded products such as baby formula, which found that some suppliers had “pushed up prices more than cost increases”.
The watchdog found that French company Danone, which owns both Aptamil and Cow & Gate that represents 71% of the baby powder sector in the UK, had raised prices by 25% in two years.
Last month, Danone cut the wholesale price of its Aptamil baby formula by 7%, with a throng of retailers including Asda, Tesco, Sainsbury’s and Iceland passing this on to the consumer.
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The watchdog plans to engage with key stakeholders, including government, public authorities and representative groups as part of its study.
CMA CEO Sarah Cardell said: “Infant formula is a key part of the weekly shop for many parents across the UK, who rely on these products to ensure their baby gets all the essential nutrients they need.
“Whilst it’s a positive sign that prices of some products have fallen since our update last November, the cost of infant milk remains at historically high levels. We’re concerned that parents don’t always have the right information to make informed choices and that suppliers may not have strong incentives to offer infant formula at competitive prices.”
“We are determined to ensure this market is working well for the many new parents who depend on infant formula and it’s essential that any changes we propose are based on evidence and a strong understanding of the market.”
