Retailers are reporting shortages of baby formula, with some stores even rationing sales less than two months after Abbott's massive recall of powder formulas. Datasembly assessed supplies at more than 11,000 stores and found that nearly 30 percent of popular baby formula brands may be sold out at retailers across the United States, according to their analysis.
Ben Reich, the chief executive officer of the Tysons, Virginia-based research firm, said that is a higher level than other products. He noted that supply chain shortages, product recalls, and inflation have brought unprecedented volatility to the category. They expect to continue to see baby formula as one of the most affected categories in the market.
CBS News reported that the baby formula shortage comes after Abbott Nutrition voluntarily recalled select batches of Alimentum, EleCare, and Similac formulas manufactured in Sturgis, Michigan, in mid-February. Abbott expanded the recall in late February, with the manufacturer including one lot of Similac PM 60/40.
FDA says Abbott failed to maintain sanitary conditions and procedures at the Michigan plant
The Food and Drug Administration released its findings two weeks ago, saying that the baby formula maker failed to maintain sanitary conditions and procedures at the Michigan manufacturing plant that was recently linked to a cluster of infant illnesses.
According to the FDA inspection, Abbott did not maintain clean surfaces used to produce and handle the powdered formula. Inspectors also found a history of contamination with the bacteria, known as cronobacter, including eight instances between the fall period in 2019 and February of this year.
Abbott's recall may have contributed to the baby formula shortage, but it is important to mention that formula supplies were already limited even before the said formula maker recalled its products.
Krishnakumar Davey, the president of strategic analytics at IRI, told the Wall Street Journal that baby formula shortages are intermittent and vary based on the retailer and location. Davey said some of the ten largest retailers in the United States had more than 20 percent of baby formula out of stock during the week that ended on January 2.
Walgreens and CVS Health look to address baby formula shortage
CVS Health, which owns the pharmacy chain, issued a statement regarding the shortage, saying that product supply challenges are currently impacting most of the retail industry, and they are continuing to work with their national brand baby formula vendors to address this issue. They regret any inconvenience that their customers may be experiencing right now.
Walgreens also released a statement to USA Today, saying that shoppers can only buy three infant and toddler formula products per transaction to help improve its inventory. Walgreens said infant and toddler formulas are seeing constraints across the United States due to increased demand for baby formula and various supplier issues.
According to the Centers for Disease Control and Prevention, nearly 75 percent of infants get some baby formula by the six-month mark.
