Joy as competition watchdog begins probe on baby powder ‘profiteering’
BABY formula firms face a full profiteering investigation by watchdogs — as hard-up families pay “historically high” prices.
The probe will force suppliers to give details on sales tactics and is a victory for The Sun, which campaigned against unfair increases.
The Competition and Markets Authority (CMA) said the average price of infant formula jumped by 25 per cent in two years.
Current policies that promote breast feeding mean retailers are banned from offering discounts or promotions on formula.
But there is a £500 a year difference between buying the cheapest and dearest brands — despite both having the same, tightly regulated ingredients.
And the cheapest tin at £10.99 now costs more than the £8.50 Healthy Start Vouchers handed out to struggling parents.
It has left some watering down formula to make it go further.
NHS figures show 75 per cent of parents use it within the first eight weeks of their tot’s birth.
Vicky Sibson, of First Steps Nutrition Trust, called for more scrutiny, adding: “Babies deserve stronger protections.”
Danone and Nestlé control 85 per cent of the market with brands such as Aptamil, Cow & Gate and SMA.
Will McMahon, of British firm Kendamil, accused multinationals of using tactics to “suppress smaller independent suppliers”.
Nestlé said it welcomes the CMA review into a “complex and serious issue”.
It added that price rises are “a last resort”.
The CMA said it’s “determined to ensure this market is working well for new parents”.
It hopes to publish its report — also looking at marketing of anti-reflux and follow-on milk — in September.
Bank’s £2Billion cost cut bid
MORE Barclays bank branches could be shut and jobs lost after bosses unveiled a £2billion cost saving plan.
In a highly-anticipated scheme designed to soothe frustrated investors, chief executive CS Venkatakrishnan said the bank would make the savings within two years and return at least £10billion to shareholders.
It is a crunch moment for the boss — known as Venkat — in his attempt to revive the bank’s fortunes after he succeeded Jes Staley in 2021.
Shares in the bank have lost more than a quarter of their value since he took charge.
Yesterday, they rose by almost ten per cent on the back of the plan.
The boss said his new strategy would create a “higher performing, higher returning bank for shareholders”.
And he repeated his confidence in the UK “as a place to do business”.
He said Barclays would continue to back its investment bank, which has for years made lower returns than its traditional consumer division.
Last year, Barclays cut its branches from 481 to 306 and axed 5,000 jobs.
One analyst at Third Bridge said as much as 20 per cent of the 94,400 global workforce might need to be cut to generate the £2billion savings.
Bosses refused to rule out further job losses or bank closures and their presentation said there will be “business-as-usual structural cost actions”.
Bread & butter
THE owner of LURPAK butter said sales stalled last year as cash-hit shoppers switched to cheaper own-brands.
ARLA said sales remained flat at £11.7billion, compared to £11.8billion in 2022.
Lurpak was an early indicator of the cost of living crisis, with security tags fitted on £7 tubs in stores as food inflation soared.
Arla said consumers had started to return to its brands — including its protein drinks — after introducing money off promotions in supermarkets.
Choc’s a way more expensive
CHOCOLATE lovers will face record price hikes this year, major suppliers have warned.
Cocoa — its key ingredient — has already seen prices jump by 20 per cent since the start of the year from poor harvests in Ghana and Ivory Coast.
Meanwhile, hedge fund traders have piled into the market to make a profit, pushing cocoa prices even higher.
East-Sussex based chocolate supplier Henley Bridge said prices are trading at £4,700 per ton — more than double the £1,900 a year ago.
Its development manager Steve Calver said: “These are historical highs the likes of which I’ve never seen before.”
Some top-selling bars have already risen by up to 50 per cent in a year, WHICH? says.
Experts warn chocolate bars could shrink and get even more expensive as giants Hershey and Mondelez, which owns Cadbury, have already flagged the impact of cocoa prices on their earnings.
Currys’ favour
THE biggest shareholder in Currys has welcomed the electrical retailer’s rejection of a takeover bid — and said it “highlighted a wider problem with the UK equity market”.
Currys blocked US firm Elliott in a £553million deal, which was a 32 per cent premium.
China’s JD.COM is also considering a bid.
Ian Lance, of Redwheel which owns 15 per cent of Currys, said unless more British fund managers backed London stocks, then “the number of quoted UK businesses will continue to decline”.
Pretty pay package
DRUG giant AstraZeneca wants to bump boss Pascal Soriot’s pay to a record £18.7million in order to keep him.
Mr Soriot is already the best-paid chief executive in the FTSE 100 and last year took home a £16.9million package.
Happy holidays
DRUG giant AstraZeneca wants to bump boss Pascal Soriot’s pay to a record £18.7million in order to keep him.
Mr Soriot is already the best-paid chief executive in the FTSE 100 and last year took home a £16.9million package.