Baby milk: Parents should be able to use supermarket loyalty points

The UK's competition regulator recently stated that, following an investigation into the infant formula market, it recommends allowing parents to use points and coupons to purchase infant formula in supermarkets. This move aims to help parents buy essential goods more economically, thereby alleviating their financial burden.

The regulatory body also emphasized that restrictions on price promotions and discounts for formula milk should be maintained to avoid negatively impacting breastfeeding. However, consumers should be able to use points, gift cards, and coupons to maximize their savings, thus benefiting financially.

It is estimated that parents can save up to £540 per year by switching infant formula brands. Consumer advocacy group Which? compared different brands of formula and found that the core nutritional components are "very similar." The organization pointed out that while some manufacturers claim their products are of superior quality or contain special ingredients, consumers should be cautious of such claims, as all infant formula sold in the UK must meet the same standards and can meet the nutritional needs of infants, regardless of brand, price, or ingredient claims.

The Competition and Markets Authority (CMA) has put forward a series of key recommendations, including allowing parents to use gift cards, coupons, and points to purchase formula, hospitals should provide parents with plain-packaged formula, and parents should be given impartial advice informing them that all infant formula sold in the UK contains the necessary nutrients infants need, and this should be stated on supermarket labels. The CMA believes that price caps should not be imposed, as this may prevent some parents from choosing cheaper options. The regulator also noted that parents may feel guilty about using lower-priced brands, believing they are of inferior quality to other brands, but in fact, babies can get adequate nutrition from lower-priced formula.

The CMA compared different brands of formula and found that price differences between brands can place a significant financial burden on parents during the first year of a baby's life. For example, buying the market-leading brand Aptamil instead of the lower-priced Little Steps would cost an extra £300 per year. Buying Aptamil's premium brand, Aptamil Advanced, would cost an extra £540. The CMA believes that the current system is unfavorable to parents and recommends that hospitals use plain-packaged infant formula to break the link between the brand of formula parents use in the hospital and the brand they later buy in supermarkets. In addition, supermarket labels for infant formula should clearly inform consumers that all infant formula contains the necessary nutrients infants need, retailers should make it easy for parents to compare prices, and the scope of advertising bans should be extended to include follow-on formula. Currently, Danone (which produces Aptamil and Cow & Gate), Nestlé (which produces SMA), and Kendamil control more than 90% of the UK market share. Danone stated that while all infant formula must meet minimum regulatory requirements, "not all formulas have the same nutritional benefits." Nestlé said: "It is crucial that families are able to make informed feeding decisions for their babies."