Iceland boss Richard Walker has accused branded baby formula makers of “exploitation”, after the competition watchdog found that prices had been rising faster than inflation and customers lacked cheaper alternatives.
Earlier this week, the Competition and Markets Authority published evidence following a review of price rises in the grocery sector. It found that prices of branded products rose faster than input costs for a number of goods, but it singled out baby formula as the area where consumers were hit hardest, due to a lack of competition.
Walker, who became executive chair of Iceland at the start of this year when his farther Malcolm Walker stepped down, took to social media platform X/Twitter to give his view on the findings.
He said: “There is a cost of living crisis. Some people cannot afford to feed their babies.
This damning CMA report reveals that infant formula suppliers have been profiteering during the cost of living crisis. Our UK market is dominated by two major players, who have raised their prices by more than 25%.
“This is exploitation. We need this to stop immediately.”
The two largest players in the baby formula market are Danone and Nestle, which each own multiple formula brands.
When the report was published, a spokesperson for Danone UK & Ireland, makers of Cow & Gate and Aptamil, said: “We recognise the challenges faced by parents due to inflation. During this difficult period, we have worked very hard to absorb the significant cost increases we have faced, make savings, and minimise any price increases. Danone is proud to offer parents - who cannot or choose not to breastfeed - a range of formula milk products at different prices.
“In order to offer parents the best value, and to ensure we are as competitive in the market as possible, we have launched new larger, better value formats. We currently offer the best value formula milk pack on the market. We have also launched a new smaller, low priced pack size to support budget-conscious families, including those conscious of their weekly budgeting.
“In Danone’s experience the formula milk market is competitive. We are committed to best practices to maintain this and will work constructively on ways we can continue to deliver value and innovation to parents. We will also continue to engage with the CMA over the coming months.”
A Nestle spokesperson said: "This is a complex and serious issue and we are open to all constructive dialogue to help parents in the most effective way possible.
"We have been working to cut our costs wherever possible and only increase prices as a last resort."
