French dairy company Danone is reducing the wholesale price of its Aptamil infant formula by 7% in the UK following an investigation by the Competition and Market Authority (CMA) into rising prices in the category. Three Aptamil ranges will see the price cut from £12 to £11.20 ($15.26 to $14.24) in UK retailer Iceland's stores. The move comes after the CMA revealed that infant formula prices had increased by 25% over the past two years, with 85% of the market dominated by two companies. Danone's price cut applies to all powdered Aptamil formulas sold to UK retailers but excludes liquid baby milks and Cow & Gate products. The CMA noted that baby formula is susceptible to higher-than-inflation price hikes, as parents are often reluctant to switch brands, and only Aldi provides a private-label alternative. An update on the CMA's investigation is expected in mid-2024.
