Daily Briefing

Baby formula imports are 'a drop in the bucket' amid the ongoing shortage


Amid the ongoing baby formula shortage, the Biden administration and formula manufacturers have implemented several measures to increase supplies—but U.S. retailers are still struggling to keep their shelves stocked, with some saying the formula supply "has not improved at all," Jesse Newman and Jaewon Kang report for the Wall Street Journal.

Cheat sheet: Infant health inequity

Inside the effort to boost formula supplies

Over the last few months, supply chain and staffing problems have contributed to a shortage of infant formula—a situation that was exacerbated by a recall of several formulas produced by Abbott Nutrition, which makes up almost 50% of the market.

After halting production at its Michigan plant in February, Abbott resumed production in early June. However, the manufacturer shut down less than two weeks later when the facility was partially flooded. According to the company, the plant reopened on July 1. It is currently producing EleCare formula, which is designed for infants with digestive problems, intending to ship the formula in the coming weeks. The company is also planning to resume production of its popular Similac formula as soon as possible.

Meanwhile, the company has imported tens of millions of pounds of formula from its manufacturing plants in Ireland and Spain.

Other manufacturers are also seeking to boost supply. Robert Cleveland, head of infant-formula operations in North America and Europe for Reckitt Benckiser Group, which manufactures Enfamil, said the company plans to import the equivalent of 66 million eight-ounce bottles between now and November, while boosting production in its U.S. facilities.

"We're shipping as much as we possibly can as fast as we can," Cleveland said. "Until those shelves are full, the crisis continues."

The Biden administration also implemented initiatives to increase U.S. formula supplies by importing overseas products that can be sold in stores or online and distributed to hospitals.

In May, the White House launched "Operation Fly Formula," which is intended to import baby formula on almost 50 flights from Europe, Australia, and Mexico, and transport the equivalent of more than 55 million eight-ounce bottles to the United States by July 17.

A senior official in the Biden administration told the Journal that imported formula has provided a critical supply for consumers until the United States' production supply starts hitting shelves.

President Joe Biden in May invoked the Defense Production Act to require suppliers to prioritize baby formula manufacturers, which the senior official told the Journal has enabled U.S.-based manufacturers to increase their production by up to 40%.

According to the official, consumers should start to see more formula supplies coming to the market this month, with retailers already rebuilding their inventories after families stocked up amid high demand.

The current state of the baby formula shortage

The senior Biden administration official told the Journal that individual companies are currently overseeing the distribution of imported formulas to retailers and medical facilities. Notably, some supplies have been sent primarily to medical channels with the neediest infants.

Some food retailers have said the baby formula supply has not increased much in recent weeks. For example, Keith Milligan, controller of Piggly Wiggly stores in Georgia and Alabama, said his stores are currently selling five of the 30 formula products they would normally sell, compared with around 10 in late spring. According to Milligan, store shelves are not empty, but they do have gaps—and customers are purchasing what they can find.

"It has not improved at all," Milligan said of the retailer's formula supply.

Further, Milligan noted that imports seem to be "a drop in the bucket," since some stores do not have access to overseas supplies.

Separately, Kroger said it is enforcing a purchase limit of four formula containers per customer. Notably, while Kroger is receiving some products from the White House effort, the retailer's overall availability has not improved much.

Hy-Vee Inc. said that while its overall supply has increased, it still does not have its typical selection, with availability changing week to week.

According to Marissa Jones, a woman with a six-month-old son in Columbus, Ohio, there has been an increase in the amount of formula on store shelves in stores, but she still can't find the Similac Advance Ready to Feed product her son needs.

As a result, Jones said she has traveled to stores far away from her home in search of the product.

"Me and other moms are battling to see who can get formula first," Jones said. "It shouldn't be that way." (Newman/Kang, Wall Street Journal, 7/14)


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