Iceland supermarket launches baby formula at cut price cost of £7.95

Supermarkets have a ‘moral obligation’ to help struggling customers, CEO Richard Walker has said (Picture: PA)

‘Businesses need to step up and do more throughout this cost of living crisis. Hopefully we’ve shown how that’s possible’, Richard Walker tells Metro.

The Iceland CEO is determined to bring down costs of formula milk. His mission comes after hearing heartbreaking tales from parents who have struggled to feed their families amid spiralling costs, and reading about Metro’s Formula For Change campaign.

Due to archaic government guidelines, it’s near impossible to buy formula milk with foodbank vouchers, loyalty points or any cash alternatives, which is why Metro joined forces with the charity Feed last summer in a bid to overturn the rules.  

SIGN METRO’S FORMULA FOR CHANGE PETITION HERE

It’s a campaign Iceland has thrown support behind from the early days, with Richard saying that as a supermarket CEO, he feels a ‘moral obligation’ to help his customers.

Speaking from Iceland’s head office in Wales, the dad-of-two tells Metro: ‘We’ve heard terrible stories of customers watering down feeds, skipping feeds or ignoring sell by dates, all of which is really bad for the baby. That prompted us to take action.’

Iceland slashed prices earlier this year, revealing three of its Aptamil formula milk products would sell at £11.15 – a move which led other retailers such as Asda and Tesco to follow suit and reduce their own prices. 

Formula milk can range in price from £11 to £15 in most supermarkets, a cost too steep for many families (Picture: Liudmila Chernetska)

Today, the supermarket is taking further steps with the launch of two formula milks – Little Steps First Infant Powder and Little Steps Follow on Powder for just £7.95. Available from the Food Warehouse and online today, the products will be rolled out across Iceland stores from March 17.

It’s not just a clever business move either, Richard insists. 

‘The price is a mind-blowing £7.95 which makes it the cheapest infant formula milk on the market. I think it will really really help our customers,’ he says. ‘We’re not making any profit out of this now. We’re passing on the savings which we’re managing to persuade the manufacturer to give straight on to our customers.’

Iceland’s launch of the cheapest baby formula on the market comes with the seal of approval from Mumsnet, an eight-million strong parenting group – who have also just announced they are joining forces with Formula For Change.

‘Having such a strong community get behind our campaign shows just how important it is,’ says Metro’s deputy editor, Claie Wilson. ‘We are thrilled to have them on board with us. It’s a huge step in making formula affordable for all.’

Iceland CEO Richard Walker firmly backs Feed and Metro.co.uk in the Formula for Change campaign (Picture: Rex)

This latest update in the campaign comes as Britain’s competition watchdog opened a probe last week into the ‘historically high’ cost of formula milk. In the two years up to Autumn 2023, the average cost of infant formula soared by over 25%.

The Competition and Markets Authority (CMA) says cash-strapped families face high prices, limited choice and few ways to pay for it.

Soon, politicians could be forced to address the scandal, while Metro’s Formula for Change petition is nearing 100,000, the crucial threshold needed for a parliamentary debate to discuss the guidelines surrounding the purchasing of formula.

Richard, who has already signed the petition, is calling on parents to help push it over the line.

‘Formula for Change is absolutely fantastic,’ he says. ‘The Prime Minister has said he is “sad” families are watering down formula to try and make it last longer, but again these are just words.’

We’re calling on the government to give retailers the green light to accept loyalty points, food bank vouchers and store gift cards as payment for infant formula (Picture: Metro.co.uk)

It’s a sentiment echoed by Dr. Erin Williams, co-founder and director of Feed. ‘It’s an absolute disgrace that a supermarket CEO and his team are doing more to help struggling families than the UK Government. 

‘They need to get their finger out and start making real, lasting changes that ensure families have the financial means to make sure no baby goes hungry. It’s really not much to ask that in 2024 British families can feed their children.’

As the Formula for Change campaign continues to grow, famous faces such as Mark and Roxanne Hoyle (better known for their YouTube username Ladbaby) Katherine Ryan and Michelle Heaton have also called for change.

Richard adds: ‘It’s brilliant LadBaby picked up on this, they certainly gave the petition a big push.

‘That was great in terms of promoting the campaign. It showed how far reaching an impact it has had.’

Prices of infant formula have increased 25% over two years (Picture: Getty Images/iStockphoto)

Inspired in part by his dad’s advice to ‘never, ever, ever, ever give up’, Richard says he has adopted that mentality by joining forces with Formula for Change and his wider mission to make formula milk accessible to all.

He adds: ‘I’m a passionate believer in business for good and I think more businesses need to step up and do more throughout this cost of living crisis. Hopefully we’ve shown how that’s possible.

‘Iceland is a family business. It was started by my mum and dad 53 years ago and we’ve always tried to do it right along the way for our communities, our customers, the wider environment and all of the different stakeholders that depend on us.

‘I’m determined to make sure that over the next 53 years we’ll do more campaigns like this and continue that legacy.’