A MAJOR supermarket has made a big change to baby formula pricing, branding it a “moral obligation”.
Iceland is slashing the price of SMA baby formula powder, making it the cheapest chain to sell the brand.
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The frozen food specialist is selling 800g tubs of SMA’s Little Steps formula milk for £7.95 – which is £1.80 cheaper than its rivals.
Shoppers will be able to pick the formula up both online and in stores.
It comes after Iceland also cut the price of three Aptamil lines back in January.
These lines include Aptamil 800g First Infant Milk, Aptamil 800g Growing Up Milk, and Aptamil 800g Follow-on Milk.
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Richard Walker, executive chairman of Iceland Foods, said: “Families with babies are still struggling with the cost-of-living crisis and we have a moral obligation to take action.
“That is why we are heaping further pressure on the manufacturers, the regulators and the market as a whole to bring prices down, just like Iceland is doing.”
The Competition and Markets Authority (CMA) said formula prices had risen by a quarter over the past two years.
The regulator has been investigating the baby milk market after finding it was vulnerable to higher-than-inflation price rises.
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Last week, a fresh probe into the supply of formula was launched.
The Iceland boss added: “I’m pleased the CMA is investigating the baby formula 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 an industry-leading formula price. This will be the cheapest available in supermarkets and is a demonstration that we’re committed to this campaign and investing in cutting prices to help our customers.”
How to find the best bargains at the supermarket
It is retailers, not brands, who are the ones that set the shelf price of the products – which is 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 age one.
The value of the vouchers has not increased since April 2021, and currently, they don’t cover the cost of even the cheapest formula after recent price increases.
Dr. Erin Williams, co-founder and director of Feed said: “Feed commend Richard and his team for their efforts in engaging with formula companies to reduce in-store prices for families and we call on other retailers and formula companies to follow suit.
“The significant price drop in SMA Little Steps highlights just how much profit margin there is in this essential product, and is no comfort to families who have been driven to drastic measures over the past year.”
How to compare baby formula prices
The CMA said last autumn that the baby formula market was highly concentrated, with just two companies accounting for 85% of sales.
This meant few parents had switched as prices rose, with the CMA revealing that infant formula prices were up by 25% on average over two years.
The CMA found that parents could save more than £500 over the first year of a baby’s life by buying cheaper formula options.
There is just one retailer in the UK which sells its own brand, which is Aldi – and Iceland’s new SMA price is now a cheaper option than the discounter.
You can compare prices on websites like Google Shopping and Trolley.co.uk – which compares the prices of 130,000 products across 14 major supermarkets.
The Latest Deals app also lets you search items and lets you compare prices at several supermarkets to see where it’s cheaper.
Of course, make sure to have a look across all the chains on the day you’re shopping in case better deals pop up.
Last week we had a look at the cheapest places to buy various big-name brands to help you compare costs.
How to save on your supermarket shop
THERE are plenty of ways to save on your grocery shop.
You can look out for yellow or red stickers on products, which show when they’ve been reduced.
If the food is fresh, you’ll have to eat it quickly or freeze it for another time.
Making a list should also save you money, as you’ll be less likely to make any rash purchases when you get to the supermarket.
Going own brand can be one easy way to save hundreds of pounds a year on your food bills too.
This means ditching “finest” or “luxury” products and instead going for “own” or value” type of lines.
Plenty of supermarkets run wonky veg and fruit schemes where you can get cheap prices if they’re misshapen or imperfect.
For example, Lidl runs its Waste Not scheme, offering boxes of 5kg of fruit and vegetables for just £1.50.
If you’re on a low income and a parent, you may be able to get up to £442 a year in Healthy Start vouchers to use at the supermarket too.
Plus, many councils offer supermarket vouchers as part of the Household Support Fund.
What help is there for parents?
Healthy Start vouchers are for parents who are pregnant or have a child under four years old.
The vouchers are worth £4.25 a week, or £221 a year.
But those with a child under the age of one get two vouchers – so £8.50 a week – which adds up to £442 a year.
The vouchers can only be used to buy the following:
- Fresh fruit and veg
- Tinned or frozen fruit or veg
- Dried fruit
- Fresh, dried or tinned pulses
- Fresh or long-life pasteurised cow’s milk
- Baby formula made from cow’s milk
These should not be:
- Any frozen or tinned foods with added ingredients like fat, salt, sugar or flavourings, such as tinned tomatoes with herbs or kidney beans in chilli sauce
- Chips or onion rings
- Tinned fruits in syrup
- Smoothies or juices
- Plant-based milk
- Follow-on formula
- Powdered, condensed or flavoured milk (apart from stage one infant formula)
You can also get free Healthy Start vitamins with the vouchers.
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 can’t use the prepaid card for online shopping or to withdraw money from a cash machine, but you can check your balance at an ATM.
How do I claim the Healthy Start vouchers?
To be eligible for Healthy Start vouchers, you need to be at least 10 weeks pregnant or have at least one child under four.
Your family’s monthly take-home pay from work must also be less than £408 a week and you need to receive Universal Credit.
If you receive Child Tax Credit you may still be able to apply, for example, if your family’s annual income is less than £16,190 or you do not receive Working Tax Credit.
If you’re under 18 and pregnant you can claim the vouchers until the baby is born, even if you do not receive any benefits.
To apply, you can use the government website, print out a paper form from the Healthy Start website or request a form from your GP or midwife.
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There’s also an option to request a form by calling the Healthy Start helpline on 0345 607 6823.
Once you’ve applied online, you should receive your card within five to 10 working days.
Do you have a money problem that needs sorting? Get in touch by emailing [email protected].
Plus, you can join our Sun Money Chats and Tips Facebook group to share your tips and stories.
