- The U.S. faced a nationwide shortage of the most popular baby formula brands in the week starting April 24, according to the latest figures from Datasembly, which tracks out-of-stock messages on retailers' websites and apps. An average rate is less than 10%.
- Reasons For The Shortage: Supply chain issues caused by the COVID-19 pandemic have made baby formula harder to find for months.
- The shortage worsened after Abbott Laboratories (NYSE:ABT) voluntarily recalled some products and closed a plant where the products were made in Sturgis, Mich.
- Related: FDA Inspection Flags Quality Control Issues At Abbott's Michigan Facility.
- The FDA is investigating consumer complaints related to five hospitalized infants, two of whom died.
- The agency said cronobacter sakazakii, a germ that can be deadly in infants, was detected in the Sturgis plant but not in the products.
- Retailers including Target Corporation (NYSE:TGT), CVS Health Corp (NYSE:CVS), and Walgreens Boots Alliance Inc (NASDAQ:WBA) have limited purchases of baby formula due to a supply shortfall.
- CVS said in an emailed statement that it restricted in-store and online purchases to three per order last month, while Walgreens issued a similar cap early in March.
- Kroger Co (NYSE:KR) has a limit of four products per customer, while Target has had restrictions on online purchases for weeks.
- Photo by tung256 via Pixabay
