Cheapest place to buy baby food as investigation into 'exploitative' prices is launched
THE cost of baby food continues to skyrocket despite some chains cutting prices, putting huge pressure on parents.
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.
A new study into the supply of formula has now been launched.
Last fall, the baby food market was said to be 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.
There is only one retailer in the UK that sells its own brand, Aldi.
The CMA found that parents can save more than £500 during a baby's first year of life by buying cheaper formula.
The World Health Organization (WHO) told Sky News last year it wanted government action to tackle rising baby food prices which were 'exploiting' British families.
It's the retailers, not the brands, who set the price of the products – and that's what shoppers pay.
To help you save as much money as possible, this week we looked at the cheapest stores where parents can buy baby food.
We've chosen the four “best” first baby food brands based on Which? and used Trolley.co.uk to compare prices from the major supermarkets.
The cheapest we found was for £9.75, while the most expensive was £13.50.
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.
You can find your local branch of your chosen supermarket on their websites.
Below we have collected the cheapest stores and possible offers for this week.
Aptamil
First up is Aptamil's First Baby Milk Formula Powder from Birth, which comes in an 800g tub.
The cheapest store to pick up a tub of this is in Iceland, where it costs £11.20.
This amounts to only € 1.40 per 100 grams.
This award is market leading for the brand and was announced in January.
It follows Danone's agreement to reduce the price it offers to stores for its Aptamil powder formula by up to 7% from January 15.
The following supermarkets all offer the same container for £13.50: Asda, Boots, Sainsbury's, Ocado, Waitrose and Tesco.
This is a whopping £2.30 more expensive than the Icelandic price and works out to £1.69/100g.
SMA
We then looked at the lowest prices for SMA'S PRO First Infant Milk From Birth.
This also comes in an 800 gram tub.
Once again Iceland came first with £12.25 – or £1.53 per 100g.
In joint second place were Asda and Tesco at £13 for a bathtub, which equates to £1.63/100g.
The most expensive are Boots, Ocado and Waitrose.
Each of these chains sells the bath for £13.50 each, or £1.69 per bath.
Cow & Gate
The cheapest place to buy Cow & Gate 1 First Baby Milk Formula Powder is also Iceland.
The 800 gram container costs only € 9.75 from the frozen specialist, which amounts to € 1.22/100 grams.
The next cheapest are Asda, Boots, Sainsbury's, Ocado and Tesco.
These chains each sell the milk substitute for £10.50, or £1.51 per 100 grams.
HiPP Organic
Finally, we looked at HiPP Organic's 1 first baby milk powder from birth – Combiotic Tub.
We found you could find the 800g tub for £13.50 in the following chains: Asda, Boots, Ocado, Sainsbury's Waitrose and Tesco.
This amounts to € 1.97 per 100 grams.
What is the CMA probe?
The CMA said on Tuesday that while prices of some formula products have fallen since November, they are still at “historically high levels”.
The new market research aims to gather evidence on consumer behaviour, the role of regulation in the market and characteristics of the formula market, such as entry and expansion barriers.
The CMA plans to produce a final report in September and if it finds there are problems in the market, it can take action to resolve them.
This could include recommending new regulations on how formula is marketed or on the information given to parents to help them choose specific brands.
Sarah Cardell, chief executive of the CMA, said: “While it is a positive sign that prices for some products have fallen since our update last November, the cost of infant milk remains at historically high levels.
“We are concerned that parents do not always have the right information to make informed choices and that suppliers do not have strong incentives to offer infant formula at competitive prices.”
She added that it is committed to ensuring the market works well for new parents who rely on infant formula and that any changes the CMA proposes should be based on evidence and a good understanding of the market.
The market research will also look at special medical formula milk, such as anti-reflux and comfort formulas, so-called follow-on milk, but also at toddler milk.
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 'own' 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 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 at 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 submit your online application, you will receive your card within five to ten business days.
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