Reckitt thinks U.S. baby formula shortage will persist until spring – Reuters
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The ongoing shortage of infant formula in the U.S. is unlikely to abate anytime soon, with Reckitt Benckiser (OTCPK:RBGPF) (OTCPK:RBGLY), the largest operator in the market currently, telling Reuters that the issue will continue until spring.
The shortage followed a voluntary recall issued by Abbott (ABT) in February on Similac, Alimentum, and EleCare baby formulas manufactured at its Sturgis, Mich. production facility, which it shut down due to safety concerns.
The pharmacy chains CVS Health Corporation (CVS), Walgreens Boots (WBA), and retailer Target (TGT) started to ration baby formula purchases as the situation worsened in May and June.
"I suspect that will persist to some degree until the spring resets," Robert Cleveland, Reckitt's (OTCPK:RBGPF) senior vice president of North America and Europe Nutrition, told the news agency.
"When we talk about the crisis we talk about the condition of the shelves and how they appear to consumers, and how well that shelf meets their needs."
Enfamil maker Reckitt (OTCPK:RBGPF) gained market share after the Abbott (ABT) recall becoming the number one baby formula supplier in the U.S. Other market operators include Perrigo (PRGO), and Gerber Products of Nestle (OTCPK:NSRGY) (OTCPK:NSRGF)
In August, Abbott (ABT) announced it restarted production of the Similac infant formula brand at the Sturgis, Mich., manufacturing facility.