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Is Canada facing a baby formula shortage? Here’s what you should know – Global News

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A massive safety recall of baby formula in the United States is having an impact on Canadian supplies, retailers say. But Canadian parents can breathe easy — for now.

While supply chain problems brought on by the COVID-19 pandemic have impacted supplies over the past year, a recent shutdown of a major production facility in Michigan has made the situation worse, Canadian retailers say.

In February, Abbott recalled several major brands and shut down its Sturgis, Mich., factory when federal officials concluded four babies suffered bacterial infections after consuming powdered infant formula from the facility. Two of the infants died.

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The closure has left American parents scrambling to find baby formula. But the same level of shortages has not been seen in Canada yet.

“Some retailers are reporting that the strong majority of this section (baby formula) within their stores is stocked,” said Michelle Wasylyshen, national spokeswoman for Retail Council Canada.

According to Wasylyshen, retailers say that formula supply has been an ongoing issue since mid-2021, but it has gotten “considerably worse” since the Abbott recall and the closure of its largest formula manufacturing plant in the U.S.

“Abbott is still not shipping any SKU (stock keeping unit) that was impacted by the recall,” she told Global News in an email on Tuesday.

“Specialized formula SKUs that do not have substitutions have been impacted for the past nine months.”




 



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Kingston, Ont. baby formula maker signs deal with goat farmers in Ontario, Quebec


Kingston, Ont. baby formula maker signs deal with goat farmers in Ontario, Quebec – Apr 25, 2022

Canadian retailer Loblaw said it is experiencing “supply issues” for one brand of baby formula due to a recall. The company did not respond to a request by Global News to specify the brand by the time of publication.

“While this has left holes in our shelves, we do have a good supply of formula from our other vendors,” Loblaw said.

Walmart Canada says industry-wide supply challenges with the product — used as a breast milk substitute to feed children less than a year old  — have “persisted for a number of years”.

Read more:

Baby formula recalled over possible Cronobacter bacteria contamination

“Despite these challenges, we continue to work closely with our suppliers to secure a strong supply of baby formula across multiple brands and formats (concentrates, powder and ready-to-feed), to make available for sale both in-store and online,” a Walmart spokesperson told Global News on Tuesday.

In the U.S., major retailers including CVS and Walgreens have begun limiting purchases to three containers per customer to try to keep formula in stock.


Baby formula is displayed on the shelves of a grocery store with a sign limiting purchases in Indianapolis, Tuesday, May 10, 2022.


AP Photo/Michael Conroy

On Monday, White House press secretary Jenn Psaki said the Food and Drug Administration was “working around the clock to address any possible shortages.”

On Tuesday, the FDA said in a statement it was working with U.S. manufacturers to increase their output and streamlining paperwork to allow more imports.

“Ensuring the availability of safe, sole-source nutrition products like infant formula is of the utmost importance to the FDA,” Robert M. Califf, commissioner of the agency, said.

Across the U.S. about 40 per cent of large retail stores are out of stock, up from 31 per cent in mid-April, according to Datasembly, a data analytics firm.




 



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Milk and dairy prices hiking in Canada


Milk and dairy prices hiking in Canada – Feb 7, 2022

The FDA has listed roughly 50 products of Similac, EleCare and  Alimentum that are included in the Abbott recall.

Abbott said on Wednesday it could restart production at the Michigan facility within two weeks, subject to FDA’s approval.

Read more:

Eye drops recalled due to labelling error, Health Canada says

In Canada, because different retailers utilize different supply chains, the impact can vary from one to another, said Wasylyshen of RCC.

Last month, a Kingston, Ont., baby formula maker finalized a deal with goat farmers in Ontario and Quebec to get a steady supply of one of its main ingredients. The deal will supply goat’s milk to the Canada Royal Milk plant.

In 2019, Costco Wholesale Canada Ltd. recalled Kirkland Signature’s Non-GMO Infant Formula for Babies Sensitive to Lactose due to possible contamination by Cronobacter bacteria.

— with files from The Associated Press, The Canadian Press and Reuters

© 2022 Global News, a division of Corus Entertainment Inc.

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Netflix’s subscriber growth slows as gains from password-sharing crackdown subside

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Netflix on Thursday reported that its subscriber growth slowed dramatically during the summer, a sign the huge gains from the video-streaming service’s crackdown on freeloading viewers is tapering off.

The 5.1 million subscribers that Netflix added during the July-September period represented a 42% decline from the total gained during the same time last year. Even so, the company’s revenue and profit rose at a faster pace than analysts had projected, according to FactSet Research.

Netflix ended September with 282.7 million worldwide subscribers — far more than any other streaming service.

The Los Gatos, California, company earned $2.36 billion, or $5.40 per share, a 41% increase from the same time last year. Revenue climbed 15% from a year ago to $9.82 billion. Netflix management predicted the company’s revenue will rise at the same 15% year-over-year pace during the October-December period, slightly than better than analysts have been expecting.

The strong financial performance in the past quarter coupled with the upbeat forecast eclipsed any worries about slowing subscriber growth. Netflix’s stock price surged nearly 4% in extended trading after the numbers came out, building upon a more than 40% increase in the company’s shares so far this year.

The past quarter’s subscriber gains were the lowest posted in any three-month period since the beginning of last year. That drop-off indicates Netflix is shifting to a new phase after reaping the benefits from a ban on the once-rampant practice of sharing account passwords that enabled an estimated 100 million people watch its popular service without paying for it.

The crackdown, triggered by a rare loss of subscribers coming out of the pandemic in 2022, helped Netflix add 57 million subscribers from June 2022 through this June — an average of more than 7 million per quarter, while many of its industry rivals have been struggling as households curbed their discretionary spending.

Netflix’s gains also were propelled by a low-priced version of its service that included commercials for the first time in its history. The company still is only getting a small fraction of its revenue from the 2-year-old advertising push, but Netflix is intensifying its focus on that segment of its business to help boost its profits.

In a letter to shareholder, Netflix reiterated previous cautionary notes about its expansion into advertising, though the low-priced option including commercials has become its fastest growing segment.

“We have much more work to do improving our offering for advertisers, which will be a priority over the next few years,” Netflix management wrote in the letter.

As part of its evolution, Netflix has been increasingly supplementing its lineup of scripted TV series and movies with live programming, such as a Labor Day spectacle featuring renowned glutton Joey Chestnut setting a world record for gorging on hot dogs in a showdown with his longtime nemesis Takeru Kobayashi.

Netflix will be trying to attract more viewer during the current quarter with a Nov. 15 fight pitting former heavyweight champion Mike Tyson against Jake Paul, a YouTube sensation turned boxer, and two National Football League games on Christmas Day.

The Canadian Press. All rights reserved.

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