Asda reduces cost of baby formula

Asda has announced that it will reduce prices on the Aptamil brand of formula milk and allow customers to pay for it by using loyalty vouchers.

Asda said the price cut comes as manufacturer Danone experiences a fall in production costs, with the supermarket explaining that the move also forms part of its efforts to support customers during the ongoing cost-of-living crisis.

Six products from the range will be reduced by an average of seven per cent, with Asda saying it plans to work with the manufacturers to ensure further falls in production costs are passed on to its customers.

“For many of Asda’s customers, and families nationwide, we understand that buying baby formula is a vital necessity in their weekly shop, which is why we’re taking swift action to pass on falling manufacturing costs to customers before any other retailer,” said Kris Comerford, chief commercial officer at Asda. “At the same time, we’ve decided to remove exclusions on using Asda Rewards vouchers to pay for baby formula.

“Whilst we respect the regulations in place regarding the sale of baby formula, we want to do everything we can to help families manage their budget and keep their family fed.”

In November, the Competition and Markets Authority (CMA) highlighted baby formula as one of the products which had contributed to higher inflation.

The CMA said that prices of baby formula have risen by 25 per cent over the past two years and that parents could save around £500 during the first year of a baby’s life by switching to a cheaper option.

The organisation added that the baby formula market is highly concentrated, with two firms holding 85 per cent of the market share, adding that suppliers may not have the right incentives to offer their products at competitive prices.

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