Tuesday, April 09, 2013

Danone rationing formula and Nestlé discounts

Campaigners are pointing to new aggressive baby milk marketing practices in the UK as a sign of increased competition with Nestlé entering the UK market, where Danone is currently the largest company.

Nestlé and Danone are respectively the world's biggest and second-biggest manufacturers of breastmilk substitutes. They have been engaged in an increasingly aggressive marketing war, particularly in Asia, since Danone purchased the NUMICO brand in 2007 (Nutricia, Milupa, Aptamil, Cow & Gate etc).

This marketing war has now reached the UK following Nestlé's takeover of Pfizer Nutrition/Wyeth in 2012, manufacture of the SMA brand. Both Danone and Nestlé have launched new strategies to promote their products - the former gaining media coverage by claiming individuals in the UK are buying up formula to send to China thus causing a shortage in the UK, the latter taking advantage of any formula panic buying by putting its follow-on formula on prominent price promotion to increase sales. Nestlé has told the BBC: 'We do not have any evidence of bulk purchase of SMA for export.'

Further details and analysis on the Baby Milk Action press release at:

1 comment:

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