Nationwide shortages of baby formula are becoming critical, with some 40% of major brands experiencing out-of-stocks and some retailers limiting purchases.
The out-of-stock rate for baby formula has hit 31% in some regions, according to analysis by Datasembly. A normal range for this product is 2% to 8%. CVS and Walgreens are limiting customers to three bottles of formula per transaction.
The shortage is caused by supply chain problems, exacerbated by the situation at an Abbott Laboratories plant in Sturgis, Mich. Production there was suspended in February after one infant died and several others fell ill with infections from cronobacter bacteria after consuming formula from that plant.
Initial FDA inspection revealed cronobacter present in the plant’s environment. However, subsequent investigation did not establish a link between that bacteria and the strain that sickened the infants.
“Unfortunately, given the unprecedented amount of volatility to the category, we anticipate baby formula to continue to be one of the most affected products in the market,” Datasembly CEO Ben Reich told CNN.
