A UK regulator has proposed a new rule that would allow parents to use supermarket loyalty points to buy baby milk, potentially saving them up to £540 a year.
The competition regulator has called for parents to be allowed to use loyalty card points and vouchers to purchase baby milk in supermarkets. This recommendation comes after a probe into the market, which highlighted the need for changes to make it easier and more affordable for parents to buy formula.
Supermarket loyalty points are rewards given to customers for their purchases, encouraging repeat business and customer retention.
These programs typically involve earning points or credits for every dollar spent, redeemable for discounts, free products, or exclusive offers.
Many supermarkets also offer tiered loyalty programs, where customers advance through levels as they accumulate points, unlocking additional benefits.
According to a study, 71% of shoppers join loyalty programs to receive rewards, demonstrating their effectiveness in driving customer engagement.
Restrictions on price promotions should remain to prevent mothers from being discouraged from breastfeeding. The regulator believes that allowing people to use points, gift cards, and vouchers will enable them to get the most value for their money without undermining breastfeeding rates.
According to the regulator’s research, parents could save up to £540 a year by switching between baby milk formula brands. Consumer campaign group Which? has also compared different formulas and found that the core nutrients are very similar. This means that mothers can choose the best option for their baby without breaking the bank.
For many parents, buying baby milk is a significant expense. Samantha Knaggs, a 35-year-old mum from Hull, breastfed her previous two babies but is now giving her third formula milk due to her anti-convulsant medication. She believes that being able to use loyalty card points would be ideal and would help her save money.
The Competition & Markets Authority (CMA) has made several key recommendations to improve the market for baby milk:
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Parents should be able to use gift cards, vouchers, loyalty points, and coupons instead of cash to buy formula.
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Hospitals should give parents formula in plain packaging to break the link between the milk used in hospitals and what is bought afterwards.
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Parents should be given impartial advice that all baby formulas sold in the UK have the right nutrients for babies, including in supermarket labelling.
The CMA believes that plain packaging would help parents make informed decisions about which formula to buy. Retailers should also make it easier for parents to compare prices, and a ban on advertising should be extended to include follow-on formula.
Three companies – Danone, Nestle, and Kendamil – control more than 90% of the UK market. While they have responded to the CMA’s recommendations, there is still much work to be done to improve the market for baby milk.
Danone's Nutricia, 'the world's leading infant nutrition company' , Nestle's Nan, and Kendamil are prominent baby formula brands.
Danone's Nutricia is known for its scientifically-developed formulas, while Nestle's Nan offers a range of products catering to different infant needs.
Kendamil, on the other hand, uses high-quality milk from local British farms.
According to market research, 62% of parents in Europe prefer premium baby formula brands like these three.
In terms of sales, Danone leads the market with a 31% share, followed by Nestle at 26%.
Kendamil's unique selling point lies in its commitment to using fresh milk from local sources.
