Asda to accept vouchers as payment for baby formula for first time | UK News

Supermarket giant Asda has today announced its plans to reduce the price of Aptamil as well as letting customers pay for baby formula using loyalty vouchers.

The supermarket chain joins Tesco and Iceland, which have already reduced Aptamil baby formula prices after the manufacturer Danone agreed to a 7% price cut to retailers.

And from today customers will be also be able to use their Asda Rewards vouchers to pay for any baby formula product they buy in store.

The decision forms part of the supermarket’s ongoing efforts to support customers struggling with the cost-of-living crisis.

It links to the Metro.co.uk campaign calling on the UK Government to urgently review their infant formula legislation.

Along with charity Feed, Metro.co.uk wants retailers to accept loyalty points, grocery vouchers provided by foodbanks and local authorities, and store gift cards as payment for infant formula. 

A total of six Aptamil products across the core range will be reduced in price, the majority by an average of 7%.

Asda will continue to work with its manufacturing partners to ensure any further falls in production costs are passed on to customers.

Kris Comerford, Asda’s Chief Commercial Officer, said: ‘For many of Asda’s customers, and families nationwide, we understand that buying baby formula is a vital necessity in their weekly shop, which is why we’re taking swift action to pass on falling manufacturing costs to customers before any other retailer.

‘At the same time, we’ve decided to remove exclusions on using Asda Rewards vouchers to pay for baby formula as we want to do everything we can to help families manage their budget and keep their family fed.’

Last week Iceland said it would be cutting the cost of Aptamil from January 16, after Danone agreed to reduce the price at which it offers its Aptamil powdered formula to retailers.

Retailers, not Danone, set the shelf price of the products, but it is expected that more supermarkets will follow Iceland, Tesco and Asda.

Five Aptamil core products will drop from either £14.50 or £14 to £13.50, while Aptamil Advanced 1 First Formula Baby Milk Powder from Birth will fall from £19 to £18.

Tesco is to cut the price of five Aptamil products by between 80p and £1 from Tuesday.

Last month, the Competition and Markets Authority (CMA) said formula prices had risen by a quarter over the past two years.

The CMA is investigating the baby formula market after finding that it is vulnerable to higher-than-inflation price rises.

Currently only one UK retailer, Aldi, sells owns brand baby formula.

The regulator found competition was impacted because shoppers were reluctant to switch brands, either because they were recommended by friends and family or because their baby would drink only one.

New parents could make significant savings of £500 in the first year of a baby’s life on formula milk products by shopping around, the CMA added.

Last year Iceland’s own research suggested 86% of new parents were concerned about how to afford to feed their babies.

Iceland has also called on the Government to review Healthy Start vouchers, which are currently worth £8.50 per week for babies up to age one.

The vouchers have not increased in value since April 2021, and they now do not cover the cost of even the cheapest formula after recent price increases.

Metro’s Formula for Change campaign already has the backing of Iceland, the Labour Party, internet sensation Ladbaby and blogger Simon Harris – and now Tesco and Asda have joined the mix.

Previous rules meant formula milk products fell into the same category as tobacco and lottery items and aren’t available to buy with cash alternatives.

Without loyalty points and vouchers, provided by local councils and food banks to those struggling the most, parents at the sharpest end of the cost of living crisis have few options.

Many parents of young babies are struggling more than ever in the cost of living crisis. Some have to water down their milk, others resort to shoplifting.

Sign the petition from Metro.co.uk here to support the Formula for Change campaign.

Get in touch with our news team by emailing us at webnews@metro.co.uk.

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