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Shortages of some baby formula in Quebec due to panic buying, U.S. supply issues

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MONTREAL — When Catherine Labrecque-Baker went to purchase hypoallergenic baby formula in mid-April for her six-month-old baby, her Quebec City pharmacist told her there was none left.

In response, Labrecque-Baker travelled to another pharmacy in the city and bought five times the amount she normally does. Then she started to stress as she fed her baby and watched her stockpile slowly shrink.

Her son has an intolerance to cow’s milk protein and relies on Alimentum, a product by American formula maker Abbott, which voluntarily recalled its products in February after four illnesses were reported in babies who had consumed powdered formula from its Michigan plant.

“What am I supposed to do?” Labrecque-Baker asked Monday in an interview. “I cried an entire night, wondering what will I do when I won’t have any more formula.”

The disruptions at Abbott, the United States’ largest formula maker, are causing supply issues for specific hypoallergenic formulas across Canada, according to Retail Council of Canada spokeswoman Michelle Wasylyshen.

But in Quebec, parents are noticing shortages of other formulas on the province’s pharmacy shelves — a result of panic buying, Wasylyshen said.

“There’s a ripple effect,” she said in an interview Monday, referring to parents like Labrecque-Baker who are scooping up more formula than normal because they fear it will go out of stock.

“We don’t want to see a return to panic buying — that approach doesn’t help anyone,” Wasylyshen said. “Some of our retailers have put limitations in place in terms of what customers can purchase, just to make sure there’s enough for everyone.”

Abbott’s decision to shut its Michigan plant exacerbated ongoing supply chain disruptions among formula makers, leaving fewer options on store shelves across much of the United States. The company is one of only a handful that produce the vast majority of the U.S. formula supply, so Abbott’s product recall — involving brands Similac, Alimentum and EleCare — wiped out a large segment of the market intended for babies with allergies or intolerance to cow’s milk protein.

On Monday, Abbott said it has reached an agreement with U.S. health officials to restart production at its Michigan factory, a key step toward easing a nationwide shortage.

Quebec is not facing the same kind of shortages as in the United States, but Wasylyshen said images of empty pharmacy shelves in the province started circulating online, causing anxiety.

The province’s Health Department on Monday said it’s working with Quebec’s association of pharmacy owners, the Association québécoise des pharmaciens propriétaires, to minimize the shortage’s impact.

“We are looking as far away as Europe to counter this lack of supply,” department spokesperson Marjorie Larouche said, adding that shortages are being noticed across Canada.

Marilie Beaulieu-Gravel of the pharmacy owners association said that after Abbott’s Alimentum formula disappeared from shelves, parents rushed to purchase Nutragimen, another hypoallergenic formula, made by Mead Johnson & Company.

“There isn’t a production issue with this product, but rather a domino effect,” Beaulieu-Gravel said Monday in an interview. “The demands for the products increase sharply and unexpectedly on the market.”

While Nutragimen products are expected to be back on shelves by mid-June, Beaulieu-Gravel said her association isn’t expecting the supply of Alimentum to return before the end of summer.

Meanwhile, some parents, including Labrecque-Baker, are left searching for formula everywhere, even online.

“I looked on Facebook Marketplace, on Kijiji … friends have been looking for me or giving me what they can,” Labrecque-Baker said. “This week, I spent $200 because I can’t wait and risk it. The more I can stock, the more days I can feed my child.”

This report by The Canadian Press was first published on May 17, 2022.

— With files from The Associated Press.

This story was produced with the financial assistance of the Meta and Canadian Press News Fellowship.

 

Virginie Ann, The Canadian Press

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Canada Goose to get into eyewear through deal with Marchon

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TORONTO – Canada Goose Holdings Inc. says it has signed a deal that will result in the creation of its first eyewear collection.

The deal announced on Thursday by the Toronto-based luxury apparel company comes in the form of an exclusive, long-term global licensing agreement with Marchon Eyewear Inc.

The terms and value of the agreement were not disclosed, but Marchon produces eyewear for brands including Lacoste, Nike, Calvin Klein, Ferragamo, Longchamp and Zeiss.

Marchon plans to roll out both sunglasses and optical wear under the Canada Goose name next spring, starting in North America.

Canada Goose says the eyewear will be sold through optical retailers, department stores, Canada Goose shops and its website.

Canada Goose CEO Dani Reiss told The Canadian Press in August that he envisioned his company eventually expanding into eyewear and luggage.

This report by The Canadian Press was first published Sept. 19, 2024.

Companies in this story: (TSX:GOOS)

The Canadian Press. All rights reserved.

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A timeline of events in the bread price-fixing scandal

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Almost seven years since news broke of an alleged conspiracy to fix the price of packaged bread across Canada, the saga isn’t over: the Competition Bureau continues to investigate the companies that may have been involved, and two class-action lawsuits continue to work their way through the courts.

Here’s a timeline of key events in the bread price-fixing case.

Oct. 31, 2017: The Competition Bureau says it’s investigating allegations of bread price-fixing and that it was granted search warrants in the case. Several grocers confirm they are co-operating in the probe.

Dec. 19, 2017: Loblaw and George Weston say they participated in an “industry-wide price-fixing arrangement” to raise the price of packaged bread. The companies say they have been co-operating in the Competition Bureau’s investigation since March 2015, when they self-reported to the bureau upon discovering anti-competitive behaviour, and are receiving immunity from prosecution. They announce they are offering $25 gift cards to customers amid the ongoing investigation into alleged bread price-fixing.

Jan. 31, 2018: In court documents, the Competition Bureau says at least $1.50 was added to the price of a loaf of bread between about 2001 and 2016.

Dec. 20, 2019: A class-action lawsuit in a Quebec court against multiple grocers and food companies is certified against a number of companies allegedly involved in bread price-fixing, including Loblaw, George Weston, Metro, Sobeys, Walmart Canada, Canada Bread and Giant Tiger (which have all denied involvement, except for Loblaw and George Weston, which later settled with the plaintiffs).

Dec. 31, 2021: A class-action lawsuit in an Ontario court covering all Canadian residents except those in Quebec who bought packaged bread from a company named in the suit is certified against roughly the same group of companies.

June 21, 2023: Bakery giant Canada Bread Co. is fined $50 million after pleading guilty to four counts of price-fixing under the Competition Act as part of the Competition Bureau’s ongoing investigation.

Oct. 25 2023: Canada Bread files a statement of defence in the Ontario class action denying participating in the alleged conspiracy and saying any anti-competitive behaviour it participated in was at the direction and to the benefit of its then-majority owner Maple Leaf Foods, which is not a defendant in the case (neither is its current owner Grupo Bimbo). Maple Leaf calls Canada Bread’s accusations “baseless.”

Dec. 20, 2023: Metro files new documents in the Ontario class action accusing Loblaw and its parent company George Weston of conspiring to implicate it in the alleged scheme, denying involvement. Sobeys has made a similar claim. The two companies deny the allegations.

July 25, 2024: Loblaw and George Weston say they agreed to pay a combined $500 million to settle both the Ontario and Quebec class-action lawsuits. Loblaw’s share of the settlement includes a $96-million credit for the gift cards it gave out years earlier.

Sept. 12, 2024: Canada Bread files new documents in Ontario court as part of the class action, claiming Maple Leaf used it as a “shield” to avoid liability in the alleged scheme. Maple Leaf was a majority shareholder of Canada Bread until 2014, and the company claims it’s liable for any price-fixing activity. Maple Leaf refutes the claims.

This report by The Canadian Press was first published Sept. 19, 2024.

Companies in this story: (TSX:L, TSX:MFI, TSX:MRU, TSX:EMP.A, TSX:WN)

The Canadian Press. All rights reserved.

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TD CEO to retire next year, takes responsibility for money laundering failures

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TORONTO – TD Bank Group, which is mired in a money laundering scandal in the U.S., says chief executive Bharat Masrani will retire next year.

Masrani, who will retire officially on April 10, 2025, says the bank’s, “anti-money laundering challenges,” took place on his watch and he takes full responsibility.

The bank named Raymond Chun, TD’s group head, Canadian personal banking, as his successor.

As part of a transition plan, Chun will become chief operating officer on Nov. 1 before taking over the top job when Masrani steps down at the bank’s annual meeting next year.

TD also announced that Riaz Ahmed, group head, wholesale banking and president and CEO of TD Securities, will retire at the end of January 2025.

TD has taken billions in charges related to ongoing U.S. investigations into the failure of its anti-money laundering program.

This report by The Canadian Press was first published Sept. 19, 2024.

Companies in this story: (TSX:TD)

The Canadian Press. All rights reserved.

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