Nestle has confirmed it is working with the Saudi Arabian government to tackle the issue of “price discrepancies” among infant formula manufacturers.

In email correspondence to just-food today (20 May), a spokesperson for Nestle Middle East explained the Saudi Arabian government had raised concerns regarding “price discrepancies across the region” among infant formula manufacturers.

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However, the firm added that the situation had been “inaccurately portrayed” by the media as a response from the government to “price-fixing by infant formula companies”.

Earlier this week just-food reported that seven unnamed infant formula manufacturers face possible fines in Saudi Arabia over allegations they may have fixed prices.

The Saudi Ministry Commerce and Industry said it had “detected violations including marketing procedures, administrative decisions, agreements and contracts all in violation”.

“The companies under investigation will be given two weeks to correct the violating situation before taking more stern measures by the ministry,” a statement from the MCI read.

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A Nestle spokesperson responded: “We are committed to working closely with the Saudi Arabian government, as we do with governments in all countries in which we operate, and will shortly share with them our approach for harmonising the prices of our infant formula across the region”.

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