Amid Baby Formula Shortage, Retailers Put Cap On Purchases: Report

  • 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 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 TGTCVS Health Corp CVS, and Walgreens Boots Alliance Inc 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 KR has a limit of four products per customer, while Target has had restrictions on online purchases for weeks.
  • Photo by tung256 via Pixabay
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