One area that the CMA is worried about is the baby formula market. The prices of baby formula have gone up by 25% in the past two years. The market is mostly controlled by two big companies, Danone and Nestle, and there isn't much evidence of parents choosing cheaper options. The CMA is concerned that parents might not have enough information to make smart choices and that the companies might not have a good reason to offer lower prices. However, a nutritionist and author said that there isn't much difference in nutrition between the branded and unbranded baby products because of strict UK rules.
Some parents, like Gemma Maxwell from Glasgow, have started thinking about trying different brands after realizing that the nutritional value of different formulas is the same. But others, like Diane Phillips from Staffordshire, still prefer the bigger brands because of their reputation. The British Retail Consortium says that families can save a lot of money by switching to cheaper brands or store-brand products that still have all the nutrition a baby needs to be healthy.
The CMA will keep investigating the baby formula market and supermarket loyalty card programs. Some supermarkets offer lower prices only to customers with loyalty cards, and the CMA will look into this in 2024. The watchdog wants to make sure that everyone can get discounts on important household products and that the promotions are clear and easy to understand. In September, a consumer group called Which? warned that loyalty card programs might not be as good as they seem, because supermarkets might raise prices to make the discounts look bigger. But both Tesco and Sainsbury's said that this isn't true.
The CMA has the power to make sure companies follow the rules and can work with them to fix any problems. If needed, it can make companies change the way they do business and even make them pay fines.
Original news source: Shoppers hit by escalating prices of branded goods (BBC)
π Vocabulary:
Group or Classroom Activities
Warm-up Activities:
– News Summary
Instructions: Divide the class into small groups. Each group will read the article and summarize it in their own words. They should focus on the main points and key information. After a designated amount of time, each group will share their summaries with the class.
– Opinion Poll
Instructions: Have the class work in pairs or small groups. Each group will come up with a question related to the article, such as "Do you think food companies should be allowed to raise prices more than their costs?" Each group will then conduct an opinion poll by asking other classmates the question and recording their responses. Afterward, the groups can present their findings to the class.
– Vocabulary Pictionary
Instructions: Write down key vocabulary words from the article on separate pieces of paper. Divide the class into two teams. Each team will take turns choosing a word and drawing a picture to represent it, while the other team tries to guess the word. The team with the most correct guesses wins.
– Synonym Challenge
Instructions: Provide the class with a list of words from the article. In pairs or small groups, students will work together to come up with as many synonyms as possible for each word. After a designated amount of time, groups can share their lists with the class and compare their answers.
– Think-Pair-Share
Instructions: After reading the article, have students think individually about their own opinions on the topic. Then, pair them up with a partner to discuss their thoughts and reasons behind their opinions. Finally, have each pair share their opinions with the rest of the class, allowing for a class-wide discussion on the topic.
π€ Comprehension Questions:
π§βοΈ Listen and Fill in the Gaps:
The UK's competition watchdog, the Competition & Markets Authority (CMA), has found that popular food brands have been raising prices more than their costs over the past two years. This means that products like baby formula, baked beans, and pet food have more expensive. About three-quarters of the companies that make these brands have been making more money on each product. The main reasons for the higher prices are the rising costs of energy and . However, the CMA found that food companies have been increasing prices more than they need to, which has to the overall increase in food prices. As a result, people have been cheaper store-brand instead of the ones, which has caused the branded products to lose popularity and money. One area that the CMA is worried about is the baby formula market. The prices of baby formula have gone up by 25% in the past two years. The market is mostly controlled by two big companies, Danone and Nestle, and there isn't much evidence of parents choosing cheaper options. The CMA is that parents might not have enough information to make smart choices and that the companies might not have a good reason to offer lower prices. However, a nutritionist and said that there isn't much difference in nutrition between the branded and unbranded baby products because of strict UK rules. Some parents, like Gemma Maxwell from Glasgow, have started thinking about trying brands after realizing that the nutritional value of different formulas is the same. But others, like Diane Phillips from Staffordshire, still prefer the bigger brands because of their . The British Retail Consortium says that can save a lot of money by switching to cheaper brands or store-brand products that still have all the nutrition a baby needs to be healthy. The CMA will keep investigating the baby formula market and supermarket card programs. Some supermarkets offer lower prices only to customers with loyalty cards, and the CMA will look into this in 2024. The watchdog wants to make sure that everyone can get discounts on household products and that the are clear and easy to . In September, a consumer group called Which? warned that loyalty card programs might not be as good as they seem, because supermarkets might raise prices to make the discounts look bigger. But both Tesco and Sainsbury's said that this isn't true. The CMA has the power to make sure companies the rules and can work with them to fix any problems. If needed, it can make companies change the way they do business and even make them pay fines.
π¬ Discussion Questions:
1. What is the Competition & Markets Authority (CMA) in the UK?
2. How would you feel if the prices of your favorite food brands increased more than their costs?
3. Do you like buying store-brand products or branded products? Why or why not?
4. What do you think about companies raising prices more than they need to?
5. How do you think rising costs of energy and fertilizer affect food prices?
6. Why do you think people are choosing cheaper store-brand products instead of branded ones?
7. What is the baby formula market and why is the CMA worried about it?
8. How would you feel if you found out that there isn't much difference in nutrition between branded and unbranded baby products?
9. Do you think parents should have more information to make smart choices about baby formula? Why or why not?
10. Why do you think some parents still prefer bigger brands even if the nutritional value is the same?
11. How much money do you think families can save by switching to cheaper brands or store-brand products?
12. What are supermarket loyalty card programs and why is the CMA investigating them?
13. Do you think loyalty card programs are as good as they seem? Why or why not?
14. How do you think supermarkets might raise prices to make discounts look bigger?
15. What do you think the CMA can do to make companies follow the rules and fix any problems?
Individual Activities
ππ Vocabulary Meanings:
Click a dot next to a word, then click the dot next to its meaning to draw a line connecting them.
Words
Meanings
π‘ Multiple Choice Questions:
π΅οΈ True or False Questions:
π Write a Summary:
Write a summary of this news article in two sentences.
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