Retailers limit purchases of infant formula amid shortage

• Several U.S. retailers have placed limits on purchases of infant formula amid a supply shortage.
• The shortage came after top supplier Abbott Laboratories recalled some products in February.
• Limits of about three or four per order have been placed in CVS, Walgreens, Kroger, and Target.

A supply shortage of infant formula has prompted U.S. retailers to limit such purchases.

The announcement on Tuesday comes after top supplier Abbott Laboratories recalled some baby formula products in February. The recall was made over complaints of bacterial infections in infants who consumed products made at its Michigan plant.

CVS limited online and in-store purchases of the products to three per order last month. A similar limit was issued by Walgreens in March. A limit of four products per customer was issued by Kroger while Target has been placing similar limits on online sales for weeks.

On Tuesday, Abbott said it was “doing everything” it can to tackle the shortage. It has prioritized production, with products being shipped by air from its facility in Ireland, which is approved by U.S. drug regulators.

The company said that no distributed formula has tested positive for bacteria. A spokesperson added that they are working closely with the Food and Drug Administration to resume operations at its Michigan facility.

Abbott, the maker of Similac, is the leading supplier of milk formula in the United States, according to Euromonitor data. It has a market share of about 42% in 2021, only being trailed by British consumer goods firm Reckitt Benckiser at about 38%.

The FDA is currently taking the necessary steps to alleviate supply issues, such as working with Abbott and other manufacturers.

According to the agency, several manufacturers have met or even exceeded capacity levels to meet the current demand of infant formula. But there were more product purchases in April than in the months before the February recall.

FDA Commissioner Robert Califf stated, “We are doing everything in our power to ensure there is adequate product available where and when they need it.”

Last month, about 40% of baby formula products were out of stock across the United States, said Datasembly chief executive Ben Reich.

He added that the shortage was further compounded by product recalls, supply chain snags, and historic inflation.

Source: Reuters