Iceland boss hits out at parent ‘exploitation’ in baby milk market

The Competition and Markets Authority found baby milk manufacturers increased prices by more than their costs during the inflation crisis. Photograph: Image Source/Alamy

The boss of Iceland has hit out at “exploitation” of new parents and joined calls for a price cap on baby formula after the competition watchdog found evidence of greedflation by leading manufacturers.

The Competition and Markets Authority (CMA) on Wednesday revealed manufacturers had increased prices by more than their costs during the inflation crisis, fattening profit margins and imposing an average 25% increase on shoppers in two years. It warned competition could be hampered because the market is dominated by two companies, Danone and Nestlé, which between them account for 85% of sales.