FairPrice launches housebrand infant formula

SINGAPORE — To tackle consumers’ concerns over rising milk prices, supermarket chain NTUC FairPrice launched a new range of infant formula milk from Australia under its housebrand on Wednesday (Sept 20).

This makes it the fourth brand of infant formula milk to be introduced into the Singapore market this year.

FairPrice Gold, meant for children up to three years old and priced between S$27 and S$29 for a 900g tin, is now available at all its outlets.

Speaking at the product launch on Wednesday, FairPrice chief executive Seah Kian Peng said that he was confident it would pull in strong demand.

Over the past few months, three other formula milk brands that have cheaper options made their debut in Singapore, namely Australia’s Own, Einmilk and Nature One Dairy.

Mr Seah said that sales for Australia’s Own, for example, have soared by 25 per cent since its June launch. The product is also available at FairPrice at S$27.50 to S$35 for a 900g tin.

FairPrice Gold is sourced from south-eastern Australia, specifically dairy farms in the Gippsland Region, and has been fortified with omega-3 and -6.

Engineer Zhao Lihong, 35, who has a 15-month-old son and is expecting another son, said that she is open to trying the new brand: “My son drinks any brand. If it’s a new brand, I’ll look at the ingredient list and check for glucose, for example.”

The cost of infant formula milk made headlines in May when the Competition Commission of Singapore released findings on the infant formula market, which showed that significant barriers to entry had pushed up prices here to among the highest in the world.

In response, the Government said that it would make more choices available for consumers.

Since then, more brands have entered the market, including a new Singapore brand Einmilk, manufactured here with milk from New Zealand, and the Nature One Dairy range, brought in from Australia by supermarket chain Sheng Siong.

Prices range from S$33 to S$39 for an 800g tin of Einmilk, and S$25.50 to S$29.50 for a 900g tin of Nature One Dairy milk.

Noting these in a Facebook post on Wednesday, Member of Parliament (Pasir Ris-Punggol GRC) Sun Xueling said: “With greater competition through the availability of more options ... it should have a stabilising effect on price increases.”

The authorities also pledged to rein in misleading advertising, and enhance public education on the nutritional content and requirements of formula milk. 

Shortly after the competition watchdog released its report, the Government set up a six-member taskforce to address the rising prices of formula milk by the end of the year. The team will facilitate imports of more formula milk options and tighten regulations on labelling and advertising, among other measures.

In a Facebook post, Senior Minister of State (Trade and Industry) Koh Poh Koon, who heads the taskforce, said that some manufacturers have also played their part. For instance, Abbott has repackaged existing products into cheaper versions, he noted.

When asked, Abbott, which is the manufacturer of Similac Gain, would only say that prices of the repackaged products “vary by retailer”, pointing out that consumers may get savings when buying the “value pack” (a 2.4kg box) compared to the 850g tin.

FrieslandCampina, which produces the Friso brand, declined to comment on its business and pricing strategy in response to the competition from cheaper brands.

Senior Minister of State (Health) Amy Khor, a taskforce member, saidon Wednesday that anecdotally, parents are open to new formula milk products, as long as their babies are receptive.

“Sometimes, the worry is that the baby may not be able to take to the change, and (the parents) need information, education and greater awareness about this, that it is possible to change to another brand,” she said at the launch event of FairPrice Gold.

Dr Khor added that the Health Promotion Board has come up with three nutritional guidebooks offering tips on breastfeeding, and selecting infant formula milk. From the end of this month, these guidebooks will be rolled out at infant-care centres and healthcare facilities such as maternity hospitals and polyclinics.