Supply chain problem pulls infant formula off shelves in US

For months, stores across the US have struggled to stock infant formula. Manufacturers say they are producing at full capacity and as much as they can, but it’s still not enough to meet current demand.

The infant formula stockout rate fluctuated between 2% and 8% in the first half of 2021, but started to rise sharply last July. Between November 2021 and early April 2022, the out-of-stock rate jumped to 31%, Datasembly data showed.

That rate increased another 9 percentage points in just three weeks in April, and is now at 40%, statistics show. In six states — Iowa, South Dakota, North Dakota, Missouri, Texas and Tennessee — more than half of infant formula was completely sold during the week beginning April 24, Datasembly said.

And while seven states had between 40-50% of infant formula products in short supply as of early April, 26 states are now struggling with supply.

“This problem has been compounded by supply chain issues, product recalls and historical inflation,” said Datasembly CEO Ben Reich. “Unfortunately, given the unprecedented amount of volatility in the category, we anticipate infant formula to remain one of the hardest hit products on the market.”

CVS and Walgreens confirmed they are limiting customers nationwide to three infant formula per purchase. “We continue to work diligently with our supplier partners to better meet customer demands,” Walgreens said in a statement to the CNN Business .

A spokesperson for Target confirmed that the retailer limited infant formula purchases to four units per customer for online shopping. There is no limit to the number of units that can be purchased in person at Target stores, the company said.

Customers shared images on social media of Walmart imposing similar restrictions on baby formula sales, though Walmart has not confirmed whether it was a national policy. Images shared with CNN Business they show empty shelves where baby formula should be and a sign saying that only five units are allowed per customer.

The shortage came after the US health agency Food and Drug Administration stopped production at Abbott Nutrition in Sturgis, Michigan, in the United States. Abbott is a major producer of infant formula.

In February, the Food and Drug Administration withdrew three brands of powdered infant formula made by the company due to possible bacterial infections, including Salmonella. The agency advised parents not to buy or use certain batches of Similac, Alimentum and EleCare powdered infant formula — all Abbott brands.

A former employee of Abbott Nutrition had filed a whistleblower complaint with the FDA months earlier, documenting his concerns that the company was hiding safety issues at its factory. Formulas manufactured at the facility were taken off the market after four children who drank it became ill with rare infections caused by the Cronobacter sakazakii bacteria. Two children died, according to the complaint.

Abbott said the former employee was fired because of “serious violations of Abbott’s food safety policies” and that it will investigate further allegations.

“Following the dismissal, the former employee, through his attorney, made new and escalating allegations to various authorities,” a company spokesperson said in a statement. He also highlighted that products tested for Cronobacter sakazakii and Salmonella were negative and that no Salmonella were found at the Sturgis facility during the investigation.

“The Cronobacter sakazakii that was found in environmental tests during the investigation was in non-product contact areas of our Sturgis facility and was not related to the two available patient samples or any other known childhood illnesses,” the spokesperson said.

Finding the standard formula became difficult for parents, many of whom described the extraordinary efforts they went to to get a single can or bottle. The specialized formula is even more difficult to locate amid widespread shortages. Parents are driving to neighboring states to try their luck, and many are asking for help on social media, begging strangers to share or even swap any extra supplies they might have.

Abbott informed the CNN in a statement last Saturday (7) that it is working closely with the FDA to resume operations at its plant in Michigan.

“We continue to make progress on corrective actions and will implement additional actions as we work to address related items. In the meantime, we are working to increase infant formula supply by prioritizing infant formula production at our facilities that supply products to the US market.”

Walmart did not respond to a request for an ugly comment by CNN Business .