After the recent announcement that the Competition and Markets Authority (CMA) has launched an investigation into the supply of infant formula in the UK, Aldi has lowered the price of its Mamia Infant First Formula for the second time in a week.
Shoppers can now buy the supermarket’s own-brand product for £8.49 for 900g, maintaining its position as the lowest-priced formula milk available on the market (£7.55 for 800g pro rata).
Last week, Iceland announced that it would start selling 800g of SMA’s Little Steps formula milk for £7.95.
Aldi is currently the only supermarket in the UK to offer own-label infant formula, with a recent CMA study showing that parents could save £500 in the first year of a baby’s life by shopping around.
“We understand that for some parents, infant formula is a necessary part of their weekly shop, and we are committed to offering the lowest prices on all our products,” said Julie Ashfield, Managing Director of Buying at Aldi UK.
“New parents have to make hard choices about how to spend their money, but Aldi’s Mamia range provides the best quality products for the early stages of parenting, at an unbeatable price.”
In November last year, the CMA published the findings from its initial probe into the infant formula market. It found that prices had risen by 25% over the past two years, with evidence suggesting that some branded suppliers had increased their prices by more than their input costs. It also noted that the market was highly concentrated, with limited availability of cheaper options.
The competition watchdog said at the end of last month that by launching a market study, it will be able to use its compulsory information-gathering powers, rather than rely on firms providing information voluntarily. Any recommendations to government resulting from its work will also now have a formal status.
The CMA stated that it intends to conduct the study as swiftly as possible and plans to publish a final report in September this year.
NAM Implications:
- A big win for Aldi’s surrogate label…
- …which coupled with Iceland’s SMA price cut…
- …means rivals will have to follow.
- (or lose share, permanently…)
