Many parents are hunting for infant formula because of a combination of short- and long-term problems that has hit most of the biggest U.S. brands.
Millions of babies in the U.S. rely on formula, which is the only source of nutrition recommended for infants who aren’t exclusively breastfed.
Here’s a look at what’s behind the problem, as well as the situation in the Canadian marketplace.
What are the causes?
Ongoing supply disruptions have combined with a recent safety recall to leave many pharmacy and supermarket shelves bare.
The problems began last year as the COVID-19 pandemic led to disruptions in labour, transportation and raw materials — economy-wide issues that didn’t spare the formula industry. Inventory was further squeezed by parents stockpiling during COVID-19 lockdowns.
WATCH | White House keenly aware of issue, trying to arrange workarounds:
U.S. stores running out of baby formula amid recall, supply disruptions
13 hours ago
Duration 4:12
Increased demand, supply chains disrupted by the pandemic and a recall on powdered baby formula issued by the U.S. Food and Drug Administration in February have all contributed to a nationwide shortage.
Then in February, Abbott Nutrition recalled several major brands of powdered formula and shut down its Sturgis, Mich., factory when federal officials began investigating four babies who suffered bacterial infections after consuming formula from the facility.
Abbott is one of only a handful of companies that produce the vast majority of the U.S. formula supply, so their recall wiped out a large segment of the market.
What is in baby formula?
Most formulas contain protein from cow’s milk that’s been altered to be easier to digest and enhanced with extra nutrients needed for growth and development. The Food and Drug Administration sets specific nutritional requirements, including minimum amounts of protein, fat, calcium and a number of vitamins. Formula makers achieve those levels by adding various sugars, oils and minerals.
The formulas are designed to mimic breast milk, though studies have repeatedly shown better health outcomes for babies who are breastfed.
Ashley Maddox of Imperial Beach, Calif., feeds her five-month-old son, Cole, with formula she bought through a Facebook group of mothers in need. (Gregory Bull/The Associated Press)
Why formula is essential for many families
Health professionals recommend exclusively breastfeeding babies until they are six months old. But federal figures show that only one in four are relying solely on breast milk at that age.
Mothers face a number of challenges to long-term breastfeeding, including returning to work and finding the time and equipment needed to pump breast milk. About 60 per cent of mothers stop breastfeeding sooner than they had planned, according to the Centers for Disease Control and Prevention.
How U.S. retailers are handling the situation
Several national chains have limited the number of containers customers can purchase in stores and online. For CVS and Walgreens, the limit is three per customer. Target limits purchases to four per person when buying online.
Amazon said Thursday it is working to keep the products available on its website and monitoring third-party sellers for price-gouging.
Empty shelves show a shortage of baby formula and a notice about quantity limits at a CVS store in San Antonio, Texas on May 10. (Kaylee Greenlee Beal/Reuters)
“If we identify a price that violates our policy, we remove the offer and take appropriate action with the seller,” a company spokesperson said in a statement.
Is the situation the same in Canada?
For the most part, no. Retailers here tell CBC News they have not been hit as hard by the shortages, though the national spokesperson for the Retail Council of Canada said she’s heard from one retailer that has struggled to keep a steady supply of formula available since 2021.
For Loblaw, that recall has affected its ability to stock certain kinds of formula, but the company said that it’s found alternatives.
WATCH | Gaps in supply, but shortages not as widespread in Canada:
Baby formula shortage in the U.S. affects Canadian parents
3 days ago
Duration 2:02
A baby formula shortage in the U.S. is starting to have an effect on Canadian stores and parents, especially those looking for speciality formulas.
To the extent that it’s happening, it appears mostly a challenge for parents of infants who require specialty formulas due to allergies, digestive problems and other medical conditions.
“In the last few months, we’ve noticed a drastic shortage of certain baby formulations,” said David Banon, co-owner of a Pharmaprix in Montreal, noting the biggest concern is around hypoallergenic formula.
While supply chains can be tenuous, Feyza Sahinyazan, an assistant professor of business at Simon Fraser University, warns that panic buying is not the answer, as it can only exacerbate the issue.
What policy-makers are doing
Typically, 98 per cent of baby formula consumed in the U.S. is made domestically, according to federal officials.
The FDA is working with Abbott to fix the violations that triggered the shutdown of its Michigan plant, which produces Similac, EleCare and several other leading powdered formulas. The company says its products have not been directly linked to the bacterial infections in children, pointing out that genetic samples collected from its factory did not match those found in several infants who got sick.
U.S. President Joe Biden on Thursday discussed with executives from Gerber and Reckitt how they could increase production and how his administration could help, the White House said. He also talked with leaders from Walmart and Target about how to restock shelves and address regional disparities in access to formula.
The administration plans to monitor possible price gouging and work with trading partners in Mexico, Chile, Ireland and the Netherlands on imports.
Still, experts caution that many of the industry-wide issues will continue to restrain supplies.
“This is going to be a problem and it’s not going away for at least a period of several months,” said Dr. Steven Abrams, pediatrician at the University of Texas.
The advice being given to parents
Most regular baby formulas contain the same basic ingredients and nutrients, so parents shouldn’t hesitate to buy a different brand if they’re having trouble finding their regular one.
The Associated Press spoke to Americans who are engaging with trusted friends and mothers in Facebook groups to get tips on where supplies are available, or to share extra quantities. But health officials warn against buying formula via social media websites or outside of conventional retailers because they could be counterfeit.
As It Happens6:46This mother doesn’t know how she’ll feed her baby as the formula shortage rages on
California’s Darice Browning tells AIH guest host Helen Mann she’s down to four cans of the speciality baby formula she needs for her 10-month-old daughter.
Many do-it-yourself formula recipes found on the internet are not advised because they can include cow’s milk and granular sugar, which may be difficult for young babies to digest, and in general lack the specific vitamins and proteins found FDA-approved formulas. Parents should also never dilute infant formula.
CALGARY – TC Energy Corp. has lowered the estimated cost of its Southeast Gateway pipeline project in Mexico.
It says it now expects the project to cost between US$3.9 billion and US$4.1 billion compared with its original estimate of US$4.5 billion.
The change came as the company reported a third-quarter profit attributable to common shareholders of C$1.46 billion or $1.40 per share compared with a loss of C$197 million or 19 cents per share in the same quarter last year.
Revenue for the quarter ended Sept. 30 totalled C$4.08 billion, up from C$3.94 billion in the third quarter of 2023.
TC Energy says its comparable earnings for its latest quarter amounted to C$1.03 per share compared with C$1.00 per share a year earlier.
The average analyst estimate had been for a profit of 95 cents per share, according to LSEG Data & Analytics.
This report by The Canadian Press was first published Nov. 7, 2024.
BCE Inc. reported a loss in its latest quarter as it recorded $2.11 billion in asset impairment charges, mainly related to Bell Media’s TV and radio properties.
The company says its net loss attributable to common shareholders amounted to $1.24 billion or $1.36 per share for the quarter ended Sept. 30 compared with a profit of $640 million or 70 cents per share a year earlier.
On an adjusted basis, BCE says it earned 75 cents per share in its latest quarter compared with an adjusted profit of 81 cents per share in the same quarter last year.
“Bell’s results for the third quarter demonstrate that we are disciplined in our pursuit of profitable growth in an intensely competitive environment,” BCE chief executive Mirko Bibic said in a statement.
“Our focus this quarter, and throughout 2024, has been to attract higher-margin subscribers and reduce costs to help offset short-term revenue impacts from sustained competitive pricing pressures, slow economic growth and a media advertising market that is in transition.”
Operating revenue for the quarter totalled $5.97 billion, down from $6.08 billion in its third quarter of 2023.
BCE also said it now expects its revenue for 2024 to fall about 1.5 per cent compared with earlier guidance for an increase of zero to four per cent.
The company says the change comes as it faces lower-than-anticipated wireless product revenue and sustained pressure on wireless prices.
BCE added 33,111 net postpaid mobile phone subscribers, down 76.8 per cent from the same period last year, which was the company’s second-best performance on the metric since 2010.
It says the drop was driven by higher customer churn — a measure of subscribers who cancelled their service — amid greater competitive activity and promotional offer intensity. BCE’s monthly churn rate for the category was 1.28 per cent, up from 1.1 per cent during its previous third quarter.
The company also saw 11.6 per cent fewer gross subscriber activations “due to more targeted promotional offers and mobile device discounting compared to last year.”
Bell’s wireless mobile phone average revenue per user was $58.26, down 3.4 per cent from $60.28 in the third quarter of the prior year.
This report by The Canadian Press was first published Nov. 7, 2024.
TORONTO – Canada Goose Holdings Inc. trimmed its financial guidance as it reported its second-quarter revenue fell compared with a year ago.
The luxury clothing company says revenue for the quarter ended Sept. 29 totalled $267.8 million, down from $281.1 million in the same quarter last year.
Net income attributable to shareholders amounted to $5.4 million or six cents per diluted share, up from $3.9 million or four cents per diluted share a year earlier.
On an adjusted basis, Canada Goose says it earned five cents per diluted share in its latest quarter compared with an adjusted profit of 16 cents per diluted share a year earlier.
In its outlook, Canada Goose says it now expects total revenue for its full financial year to show a low-single-digit percentage decrease to low-single-digit percentage increase compared with earlier guidance for a low-single-digit increase.
It also says it now expects its adjusted net income per diluted share to show a mid-single-digit percentage increase compared with earlier guidance for a percentage increase in the mid-teens.
This report by The Canadian Press was first published Nov. 7, 2024.
