Ireland

Return of own-brand formula highlights big companies’ profits - Senator

Rebecca Moynihan says Aldi’s ability to sell baby formula for considerably less than branded feeds shows it can be done

Aldi’s Mamia formula costs €8.99 and is the only private label formula available on the market in Ireland. Photograph: Anthony Devlin/PA Wire

Conor Pope Consumer Affairs Correspondent
Sun Apr 28 2024 - 16:18

The reintroduction of a own-brand infant formula to the Irish market five years after it was discontinued has been welcomed as a measure which could ease the financial pressure on many families.

An 800g tub of Aldi’s Mamia formula costs €8.99 or up to €7.50 cheaper than comparable but more established brands and is the only private label formula available on the market in Ireland.

When asked why it was being reintroduced a spokesman said there was “less demand” in 2019 but “given the economic landscape in recent months and the unprecedented levels of inflation faced by many families, we’ve seen the significant costs that parents with young children face”.

The discounter’s ability to sell the formula for considerably less than branded alternatives highlights the profits some multinationals, notably Danone and Nestlé, are making, according to Labour senator Rebecca Moynihan.

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“The fact that Aldi are able to offer it at this price shows other formula companies are making extremely large profits in what is an essential product for many,” she said.

Ms Moynihan has been vocal about the cost of infant formula in recent months and she noted that since she first highlighted the issue, there had been two price reductions by supermarkets. “That means they obviously have the ability to respond,” she said.

However, she said the price of formula was often not talked about “because it is so stigmatised and it’s difficult to actually talk about the support that’s needed. Children need to be fed and as long as it’s nutritious food for them, end of story.”

She stressed she was not advocating the use of formula at the expense of breast milk but said that although more than 50 per cent of Irish infants were fed with formula, it could be “really stigmatising and even store vouchers can’t be used to buy formula as if it’s some sort of public health threat like alcohol”.

Ms Moynihan had a comparative price analysis done on infant formula by the Parliamentary Budget Office which put formula price inflation at 30 per cent from January 2020 to December 2023 compared with an inflation rate of 10 per cent less for groceries more broadly.

Senator Rebecca Moynihan asked the CCPC to investigate the baby formula sector in Ireland. Photograph: Gareth Chaney/Collins

Earlier this year she contacted the Competition and Consumer Protection Commission (CCPC) after an investigation into grocery prices by its counterpart in Britain, the Competition and Markets Authority (CMA), found up to three-quarters of branded goods makers, notably baby formula makers, had increased their profitability and contributed to higher food price growth.

While consumers could for the most part find cheaper alternatives, they struggled in the case of baby formula, the CMA said.

Ms Moynihan asked the CCPC to investigate the sector in Ireland – a net exporter of baby formula – but was told no such investigation was planned.

“I am really disappointed you have a situation where you have two dominant players, and the CCPC says it will not focus on competition issues and will ‘monitor’ what is happening in the UK. That is like copying the homework of the CMA.”

Conor Pope

Conor Pope

Conor Pope is Consumer Affairs Correspondent, Pricewatch Editor and cohost of the In the News podcast

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