Supply Chain Expert: No Biden Formula for Solving The Baby Formula Shortage
40 percent of America's baby formula supplies are out of stock
PUBLIUS SPECIAL GUEST: Salvatore “Sal” Stile, is the founder and president of Alba Wheels Up® International. As a prominent international shipping and customs clearance company, Alba Wheels Up is committed to striving that their clients’ shipments will always be in compliance so their goods will arrive to market efficiently and reliably—every time.
The baby formula supply problem is getting worse
40 percent of America's baby formula supplies are out of stock
Retailers placing limits on baby formula purchases as shortage worsens
For months stores nationwide have been struggling to stock enough baby formula. Manufacturers say they're producing at full capacity and making as much formula as they can, but it's still not enough to meet current demand.
The out-of-stock rate for baby formula hovered between 2% and 8% in the first half of 2021 but began rising sharply last July. Between November 2021 and early April 2022, the out-of-stock rate jumped to 31%, data from Datasembly showed.
That rate increased another 9 percentage points in just three weeks in April, and now stands at 40%, the statistics show. In six states — Iowa, South Dakota, North Dakota, Missouri, Texas, and Tennessee — more than half of baby formula was completely sold out during the week starting April 24, Datasembly said.
And although seven states had between 40-50% of baby formula products out of stock as of early April, 26 states are now struggling with supply.
CVS and Walgreens confirmed that it is limiting customers nationwide to three toddler and infant formulas per transaction. "We continue to work diligently with our supplier partners to best meet customer demands," Walgreens said in a statement to CNN Business.
The shortage has been exacerbated by the Food and Drug Administration's shutdown of an Abbott Nutrition facility in Sturgis, Michigan. Abbott is a major producer of baby formula.
In February, the US Food and Drug Administration recalled three brands of powdered baby formulas made by the company due to potential bacterial infections, including Salmonella. The agency advised parents not to buy or use certain batches of Similac, Alimentum and EleCare powdered infant formulas, all Abbott brands.
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BIO: With decades of regulatory experience and a keen perspective to forecast market trends, Sal is a relentless advocate for his clients’ success. His passion for building strong long-term relationships and providing unparalleled accessibility are intangible benefits that have helped position Alba Wheels Up as a renowned authority in the customs broker and freight forwarding industry. Sal’s vast knowledge of national and international shipping, not to mention the economy, has made him a resource for many of the nation’s leading publications—both industry and mainstream—and he has been sourced in outlets that have included The Wall Street Journal, the New York Post, and Newsday, among others.
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Salvatore “Sal” Stile is the founder and president of Alba Wheels Up® International. As a prominent international shipping and customs clearance company, Alba Wheels Up is committed to striving that their clients’ shipments will always be in compliance so their goods will arrive to market efficiently and reliably—every time.