Manufacturers say they are struggling to stock enough baby formula nationwide and pictured is baby formula January 13 in Chicago. (Scott Olson, Getty Images)
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ATLANTA — For months, stores across the country have struggled to stock enough baby formula. Manufacturers say they are producing at full capacity and making as many formulas as possible, but it’s still not enough to meet current demand.
The baby formula out-of-stock rate hovered 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 rose to 31%, data from Datasembly showed.
That rate rose another 9 percentage points in just three weeks in April and now stands at 40%, the stats show. In six states — Iowa, South Dakota, North Dakota, Missouri, Texas and Tennessee — more than half of baby formula sold out completely in the week beginning April 24, Datasembly said.
And although seven states had sold out between 40% and 50% of baby formula products in early April, 26 states are now struggling to get supplies.
“This problem has been compounded by supply chain issues, product recalls and historical inflation,” said Ben Reich, CEO of Datasembly. “Unfortunately, given the unprecedented volatility in this category, we anticipate that baby formula will continue to be one of the hardest-hit products on the market.”
CVS and Walgreens confirmed that they limit customers to three infant formulas per transaction statewide. “We continue to work diligently with our supplier partners to best meet customer needs,” Walgreens said in a statement to CNN Business.
A Target spokesman confirmed the retailer has capped baby formula purchases at four units per customer for online purchases. There is no limit to the number of units that can be purchased in person at Target stores, the company said.
Customers shared pictures social media from Walmart, which imposed similar restrictions on the sale of baby formula, although Walmart did not confirm whether it was a statewide policy. Images shared with CNN Business show empty shelves where baby food should be and a sign saying only five units per customer were allowed.
Walmart did not immediately respond to a request for comment from CNN Business.
The shortage was exacerbated by the Food and Drug Administration’s closure of an Abbott Nutrition facility in Sturgis, Michigan. Abbott is a major manufacturer of baby food.
In February, the US Food and Drug Administration recalled three brands of powdered baby formula made by the company because of possible bacterial infections, including salmonella. The agency advised parents not to buy or use certain lots of Abbott-branded Similac, Alimentum and EleCare powdered infant formulas.
A former Abbott Nutrition employee filed a whistleblower complaint with the FDA months before the recall, documenting concerns that the company was hiding safety issues at its Sturgis, Michigan facility. The formulas made at the facility were recalled after four infants who drank them contracted rare infections caused by Cronobacter sakazakii bacteria. Two infants died, the complaint said.
Abbott’s spokesman noted that the recall only affected batches of formulas manufactured and distributed at its Sturgis, Michigan facility and said that no other products Abbott distributes have tested positive for salmonella or other pathogens to date had been.
It has become difficult for parents to find a standard formula, with many describing the extraordinary effort they went to to score even a single can or bottle. Specialized formulas are even harder to find amid the widespread shortage. Parents head to neighboring states to try their luck, and many are taking to social media to seek help and beg strangers to share or even trade their extra supplies.
Abbott told CNN in a statement Saturday that it is working closely with the FDA to resume operations at its Michigan facility.
“We continue to make progress on corrective actions and will be taking additional actions as we work to resolve issues related to the recent recall. In the meantime, we are working to increase infant formula supply by prioritizing infant formula production at our facilities to provide products for the US market,” Abbott said in a statement to CNN Business.
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Parija Kavilanz and Ramishah Maruf Business