The milk formula business is worth more than $45 billion globally, and projected to increase by over 50% by 2020 owing to rapid expansion in Asia.
The report* by Changing Markets Foundation reviewed more than 400 infant milks for babies less than one year old made by Nestlé, Danone, Mead Johnson Nutrition, and Abbott. It concluded that product differentiation is not science-based, but instead informed by research into consumer preferences, and guided by a desire to increase manufacturers’ market share and profits. In other words: it’s pure greed.
Breast milk substitutes are legitimate products for hildren who are not breastfed for whatever reason, but there is no excuse for brands like Nestlé to use manipulative marketing to exploit the vulnerability of sleep-deprived and cash-strapped parents.
Product differentiation is deliberately designed to appeal to the tastes and lifestyle preferences of parents, or prevailing fears and fads. Manufacturers including Nestlé then package their products in ‘premium’ ranges and charge exorbitant prices for what should be an uncomplicated and affordable commodity.
Decades of tireless campaigning by citizens groups, churches, and progressive politicians have led to international standards controlling infant formula ingredients and marketing. Stricter government regulation and enforcement is still needed, but is unlikely, given the free rein given to companies under the current administration. Only public pressure on brands can stop them.
One can see the same thing happening, only worse, in the pharmaceutical industry and many others. In a hyper capitalist world one has to expect profiteering, which is why we have Government to restrain the worst cheats and try to establish a level playing field, fining the wrong-doers enough to make them squeel and toe the line. There are crowds of people who say they want liberty and freedom from Big Government, which is fine as long as all they do is talk. But watch the self same people protest if they are the target of fraudsters and conmen themselves. Hypocrites! Sensible people can grumble but support rules made for the benefit of the whole nation. Competition should be lively but fair.
* “Milking It: How milk formula companies are putting profits before science”