Major chain makes major change to baby food and calls it a ‘moral obligation’
A major supermarket has made a major change in the pricing of baby food, calling it a ‘moral imperative’.
Iceland is cutting the price of SMA baby food powder, making it the cheapest chain to sell the brand.
The frozen food specialist is selling 800g jars of SMA’s Little Steps formula milk for £7.95, which is £1.80 cheaper than its competitors.
Shoppers can pick up the formula both online and in stores.
It comes after Iceland also cut the price of three Aptamil lines in January.
These lines include Aptamil 800 g first infant milk, Aptamil 800 g growing-up milk and Aptamil 800 g follow-on milk.
Richard Walker, executive chairman of Iceland Foods, said: “Families with babies are still struggling with the cost of living and we have a moral obligation to take action.
“That is why we are putting further pressure on manufacturers, regulators and the market as a whole to reduce prices, just as Iceland is doing.”
The Competition and Markets Authority (CMA) said formula prices have risen by a quarter in the past two years.
The regulator has been investigating the baby milk market after finding it vulnerable to price increases higher than inflation.
Last week, a new study into the supply of formula was launched.
The Icelandic boss added: “I am pleased that the CMA is investigating the baby food market, but while we await their findings, families need support now.
“I welcome SMA’s decision to listen to our call and work with us to deliver industry-leading formula pricing. This will be the cheapest available in supermarkets and is a demonstration that we are committed to this campaign and investing in price reductions to help our customers.”
It is the retailers, not the brands, who determine the shelf price of the products – what shoppers pay.
Iceland has also previously called on the government to review Healthy Start vouchers, which are currently worth £8.50 per week for babies up to one year old.
The value of the vouchers has not increased since April 2021 and currently does not cover the costs of even the cheapest formula following the recent price increases.
Dr. Erin Williams, co-founder and director of Feed said: “Feed commends Richard and his team for their efforts in working with format companies to reduce retail prices for families and we call on other retailers and format companies to follow suit.
“The significant price drop of SMA Little Steps shows how much profit margin there is in this essential product, and is no comfort to families who have been forced to take drastic measures over the past year.”
How to compare baby food prices?
The CMA said last autumn that the baby food market was highly concentrated, with just two companies accounting for 85% of sales.
This meant that few parents had switched when prices rose. The CMA found that infant formula prices had risen by an average of 25% in two years.
The CMA found that parents can save more than £500 during a baby’s first year of life by buying cheaper formula.
There is only one retailer in the UK that sells its own brand, Aldi – and Iceland’s new SMA price is now a cheaper option than the discounter.
You can compare prices on websites such as Google Shopping and Trolley.co.uk, which compare the prices of 130,000 products in 14 major supermarkets.
The Latest Deals app also allows you to search for items and compare prices at different supermarkets to see where it is cheaper.
Of course, be sure to check out all the chains on the day you shop, just in case better deals pop up.
Last week we looked at the cheapest places you can buy several major brands so you can compare costs.
How to save on your supermarket shopping
There are plenty of ways to save money at your grocery store.
You can look for yellow or red stickers on products, which indicate when they are discounted.
If the food is fresh, eat it quickly or freeze it for another time.
Making a list should also save you money because you’ll be less likely to make hasty purchases when you go to the grocery store.
Choosing your own brand can be an easy way to save hundreds of dollars a year on your food bill, too.
This means ditching the ‘best’ or ‘luxury’ products and instead opting for ‘proprietary’ or value-for-money lines.
Many supermarkets have shaky fruit and vegetable programs where you can get cheap prices if they are misshapen or imperfect.
For example, Lidl runs its Waste Not scheme, offering 5kg boxes of fruit and vegetables for just £1.50.
If you’re on a low income and a parent, you could potentially get up to £442 a year in Healthy Start vouchers, which you can also use at the supermarket.
In addition, many municipalities offer supermarket vouchers as part of the Household Support Fund.
What help is there for parents?
The Healthy Start vouchers are for parents who are pregnant or have a child under the age of four.
The vouchers are worth £4.25 per week, or £221 per year.
But those with a child under one year old get two vouchers – so £8.50 per week – which works out to £442 per year.
The vouchers can only be used to purchase the following:
- Fresh fruits and vegetables
- Canned or frozen fruits or vegetables
- Dried fruit
- Fresh, dried or canned legumes
- Fresh or long-life pasteurized cow’s milk
- Baby food made from cow’s milk
These may not be:
- Any frozen or tinned food with added ingredients such as fat, salt, sugar or flavourings, such as tinned tomatoes with herbs or kidney beans in chilli sauce
- Chips or onion rings
- Canned fruit in syrup
- Smoothies or juices
- Vegetable milk
- Follow-up formula
- Powdered, condensed or flavored milk (except phase one infant formula)
With the vouchers you can also get free Healthy Start vitamins.
There used to be paper vouchers, but now the money is loaded onto a prepaid card that can be used at any location where Mastercard is accepted.
You cannot use the prepaid card to shop online or withdraw money from an ATM, but you can check your balance at an ATM.
How do I claim the Healthy Start vouchers?
To be eligible for the Healthy Start vouchers, you must be at least 10 weeks pregnant or have at least one child under the age of four.
Your family’s monthly take-home pay from work must also be less than £408 per week and you must receive Universal Credit.
If you receive the Child Tax Credit, you may still be able to claim, for example if your family’s annual income is less than £16,190 or if you do not receive Working Tax Credit.
If you are under 18 years old and pregnant, you can claim the vouchers until the baby is born, even if you do not receive benefits.
To apply, you can use the government website, print a paper form on the Gezond Start website or request a form from your GP or midwife.
You can also request a form by calling the Healthy Start helpline on 0345 607 6823.
After you register online, you will receive your card within five to ten business days.
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