Joy now that competition watchdog investigation begins into 'profiteering' of baby powder

BABY formula companies are facing an extensive profiteering investigation by watchdogs – as families in need pay 'historically high' prices.

The investigation will force suppliers to give details of sales tactics and is a victory for The Sun, which campaigned against unfair price increases.

Baby food manufacturers are facing an extensive investigation into profiteering by watchdogsCredit: Alamy

How to solve profit margins on baby food

The Competition and Markets Authority (CMA) said the average price of infant formula has risen by 25 per cent in two years.

The current breastfeeding promotion policy means that retailers are not allowed to offer discounts or promotions on bottle feeding.

But there is a difference of £500 a year between buying the cheapest and most expensive brands, despite both having the same tightly regulated ingredients.

And the cheapest can at £10.99 now costs more than the £8.50 Healthy Start Vouchers being handed out to struggling parents.

A diluted formula has been left behind to move forward.

NHS figures show that 75 per cent of parents use it in the first eight weeks after their toddler's birth.

Vicky Sibson of First Steps Nutrition Trust called for greater scrutiny, adding: “Babies deserve stronger protection.”

Danone and Nestlé control 85 percent of the market with brands such as Aptamil, Cow & Gate and SMA.

Will McMahon, of British firm Kendamil, accused multinationals of using tactics to “suppress smaller independent suppliers”.

Nestlé said it welcomes the CMA assessment of a “complex and serious issue”.

I'm a rich mom and we have babies differently. I think I would have died if I hadn't paid for a full night's sleep

It added that price increases are “a last resort.”

The CMA said it is “committed to ensuring this market works well for new parents”.

The company hopes to publish its report – which also looks at the marketing of anti-reflux and follow-on milks – in September.

Bank's offer of £2 billion in cost savings

MORE Barclays bank branches could be closed and jobs lost after bosses unveiled a £2 billion cost-cutting plan.

In a long-awaited plan to calm frustrated investors, chief executive CS Venkatakrishnan said the bank would make the savings within two years and return at least £10 billion to shareholders.

Barclays bosses have unveiled a £2 billion cost-cutting planCredit: PA

It is a crucial moment for the boss – known as Venkat – in his bid to revive the bank's fortunes after succeeding Jes Staley in 2021.

The bank's shares have lost more than a quarter of their value since he took office.

Yesterday they rose by almost ten percent thanks to the plan.

The boss said his new strategy would create a “better performing, better-returning bank for shareholders”.

And he reiterated his confidence in Britain “as a place to do business”.

He said Barclays would continue to support its investment bank, which has for years posted lower returns than its traditional consumer division.

Last year, Barclays cut its branches from 481 to 306 and cut 5,000 jobs.

An analyst at Third Bridge said as many as 20 percent of the 94,400 global workforce would need to be cut to generate the £2 billion in savings.

Bosses refused to rule out further job losses or bank closures and their presentation said “business-as-usual structural cost actions” will take place.

Bread butter

THE owner of LURPAK butter said sales came to a standstill last year as cash-rich buyers switched to cheaper own brands.

ARLA said sales were flat at £11.7 billion, compared with £11.8 billion in 2022.

Lurpak was an early indicator of the cost of living crisis, with security labels placed on £7 kegs in shops as food inflation soared.

Arla said consumers were starting to return to its brands – including its protein drinks – after introducing discount promotions in supermarkets.

Choc is a lot more expensive

CHOCOLATE lovers will face record price rises this year, major suppliers have warned.

Cocoa, the key ingredient, has already seen prices rise by 20 percent since the start of the year due to poor harvests in Ghana and Ivory Coast.

Chocolate is facing a record price increaseCredit: Getty

Meanwhile, hedge fund traders have piled into the market to make a profit, sending cocoa prices even higher.

East Sussex-based chocolate supplier Henley Bridge said prices are at £4,700 per tonne – more than double from £1,900 a year ago.

Development manager Steve Calver said: “These are historic highlights like I've never seen before.”

Some best-selling bars have already increased by as much as 50 percent in a year. WHICH? say.

Experts warn that chocolate bars could shrink and become even more expensive as giants Hershey and Mondelez, owner of Cadbury, have already highlighted the impact of cocoa prices on their revenues.

Curry's favor

THE largest shareholder of Currys has welcomed the rejection of a takeover bid by the electronics chain, saying it “highlighted a wider problem with the UK stock market”.

Currys blocked US company Elliott in a £553m deal, which was a 32 per cent premium.

China's JD.COM is also considering a bid.

Ian Lance of Redwheel, which owns 15 percent of Currys, said that unless more British fund managers back London shares, “the number of listed British companies will continue to fall”.

Nice salary package

Drugs giant AstraZeneca wants to increase boss Pascal Soriot's pay to a record £18.7 million to keep him.

Mr Soriot is already the highest paid CEO in the FTSE 100, taking home a £16.9m package last year.

Happy Holidays

Drugs giant AstraZeneca wants to increase boss Pascal Soriot's pay to a record £18.7 million to keep him.

Mr Soriot is already the highest paid CEO in the FTSE 100, taking home a £16.9 million package last year.