One area of concern highlighted by the CMA is the baby formula market, where prices have risen by a quarter over the past two years. The market is dominated by two major players, Danone and Nestle, and there is little evidence of parents switching to cheaper alternatives. The CMA expressed concerns that parents may not have the necessary information to make informed choices and that suppliers may not have strong incentives to offer competitive prices. However, a nutritionist and author stated that there is very little difference in nutritional value between branded and unbranded baby products due to strict UK regulations.

Some parents, like Gemma Maxwell from Glasgow, have started considering alternative brands after realizing that the nutritional value of different formulas is the same. However, others, like Diane Phillips from Staffordshire, still prefer the bigger brands due to their reputation. The British Retail Consortium suggests that families can make significant savings by switching to cheaper brands or own-label products that provide the necessary nutrition for a healthy baby.

The CMA will further investigate the baby formula market and supermarket loyalty card schemes. Some supermarkets have been offering cheaper prices exclusively to customers with loyalty cards, and the CMA will examine this practice in 2024. The watchdog wants to ensure that all customers have access to discounts on essential household products and that promotions are clear and transparent. In September, consumer group Which? warned that loyalty card schemes may not be as beneficial as they appear, with supermarkets increasing prices to make discounts seem larger. However, both Tesco and Sainsbury's rejected these claims.

The CMA has the authority to enforce consumer law and work with companies to rectify any issues. If necessary, it can compel firms to change their business practices and even impose fines.

Original news source: Shoppers hit by escalating prices of branded goods (BBC)

– News Summary
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4. Each group should then work together to create a concise summary of the article.
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– Opinion Poll
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– Vocabulary Pictionary
Instructions:
1. Write a list of key vocabulary words from the article on the board.
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3. Instruct each group to choose a word from the list and draw a quick sketch to represent that word.
4. Without using any words, the group must try to convey the meaning of the word to the rest of the class through their drawing.
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– Future Predictions
Instructions:
1. Instruct each student to imagine they are a food industry expert.
2. Give them a few minutes to think about and write down their predictions for the future of food prices and consumer behavior based on the information in the article.
3. Divide the class into small groups and have them share and discuss their predictions with each other.
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The UK's competition watchdog, the Competition & Markets Authority (CMA), has found that makers of popular food brands have been raising prices by more than their costs over the past two years. This has resulted in ? prices for ? such as baby formula, baked beans, and pet food. About three-quarters of branded ? have been making higher profits on individual products. Rising energy and fertilizer costs have been the main drivers of high food price inflation, but the CMA found that food firms have been increasing prices more than necessary, contributing to the inflation. As a result, ? have been turning to own-label products, causing branded products to lose ? share and overall profitability. One area of concern highlighted by the CMA is the baby formula market, where prices have risen by a quarter over the past two years. The market is dominated by two major ?, Danone and ?, and there is little evidence of parents switching to cheaper alternatives. The CMA expressed concerns that parents may not have the necessary information to make informed choices and that suppliers may not have ? incentives to offer competitive prices. However, a nutritionist and author stated that there is very little difference in nutritional value between branded and unbranded baby products due to strict UK regulations. Some parents, like Gemma Maxwell from Glasgow, have started considering alternative brands after realizing that the nutritional value of different formulas is the same. However, others, like Diane Phillips from Staffordshire, still prefer the bigger brands due to their reputation. The ? Retail Consortium suggests that families can make significant savings by switching to cheaper brands or own-label products that provide the necessary nutrition for a healthy baby. The CMA will further investigate the baby formula market and supermarket ? card ?. Some supermarkets have been ? cheaper prices exclusively to customers with loyalty cards, and the CMA will examine this practice in 2024. The watchdog wants to ensure that all customers have access to ? on essential household products and that promotions are clear and transparent. In ?, consumer group Which? warned that loyalty card schemes may not be as beneficial as they appear, with supermarkets ? prices to make discounts seem larger. However, both Tesco and Sainsbury's rejected these claims. The CMA has the authority to enforce consumer law and work with companies to rectify any issues. If necessary, it can compel firms to ? their business practices and even impose fines.

1. What is your opinion on food companies raising prices more than necessary?
2. How would you feel if you found out that the prices of your favorite food brands were inflated?
3. Do you think it's fair for food companies to increase prices more than their costs?
4. Why do you think consumers have been turning to own-label products instead of branded products?
5. Do you think parents should switch to cheaper alternatives for baby formula if there is little difference in nutritional value?
6. How would you feel if you found out that you have been paying more for baby formula without realizing there are cheaper alternatives?
7. What factors do you consider when deciding whether to buy a branded product or a cheaper alternative?
8. Why do you think some parents still prefer bigger brands for baby formula despite the higher prices?
9. What do you think about supermarket loyalty card schemes? Do you think they are beneficial for customers?
10. How would you feel if you found out that supermarkets were increasing prices to make loyalty card discounts seem larger?
11. Do you think it's important for all customers to have access to discounts on essential household products?
12. Why do you think the CMA is investigating the baby formula market and supermarket loyalty card schemes?
13. How do you think the CMA can ensure that promotions are clear and transparent for customers?
14. What actions do you think the CMA should take if they find that food companies are inflating prices unnecessarily?
15. Do you think fines are an effective way to enforce consumer law and rectify issues with business practices? Why or why not?

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