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.
TORONTO – Roots Corp. may have built its brand on all things comfy and cosy, but its CEO says activewear is now “really becoming a core part” of the brand.
The category, which at Roots spans leggings, tracksuits, sports bras and bike shorts, has seen such sustained double-digit growth that Meghan Roach plans to make it a key part of the business’ future.
“It’s an area … you will see us continue to expand upon,” she told analysts on a Friday call.
The Toronto-based retailer’s push into activewear has taken shape over many years and included several turns as the official designer and supplier of Team Canada’s Olympic uniform.
But consumers have had plenty of choice when it comes to workout gear and other apparel suited to their sporting needs. On top of the slew of athletic brands like Nike and Adidas, shoppers have also gravitated toward Lululemon Athletica Inc., Alo and Vuori, ramping up competition in the activewear category.
Roach feels Roots’ toehold in the category stems from the fit, feel and following its merchandise has cultivated.
“Our product really resonates with (shoppers) because you can wear it through multiple different use cases and occasions,” she said.
“We’ve been seeing customers come back again and again for some of these core products in our activewear collection.”
Her remarks came the same day as Roots revealed it lost $5.2 million in its latest quarter compared with a loss of $5.3 million in the same quarter last year.
The company said the second-quarter loss amounted to 13 cents per diluted share for the quarter ended Aug. 3, the same as a year earlier.
In presenting the results, Roach reminded analysts that the first half of the year is usually “seasonally small,” representing just 30 per cent of the company’s annual sales.
Sales for the second quarter totalled $47.7 million, down from $49.4 million in the same quarter last year.
The move lower came as direct-to-consumer sales amounted to $36.4 million, down from $37.1 million a year earlier, as comparable sales edged down 0.2 per cent.
The numbers reflect the fact that Roots continued to grapple with inventory challenges in the company’s Cooper fleece line that first cropped up in its previous quarter.
Roots recently began to use artificial intelligence to assist with daily inventory replenishments and said more tools helping with allocation will go live in the next quarter.
Beyond that time period, the company intends to keep exploring AI and renovate more of its stores.
It will also re-evaluate its design ranks.
Roots announced Friday that chief product officer Karuna Scheinfeld has stepped down.
Rather than fill the role, the company plans to hire senior level design talent with international experience in the outdoor and activewear sectors who will take on tasks previously done by the chief product officer.
This report by The Canadian Press was first published Sept. 13, 2024.
VANCOUVER – Mediated talks between the union representing HandyDART workers in Metro Vancouver and its employer, Transdev, are set to resume today as a strike that has stopped most services drags into a second week.
No timeline has been set for the length of the negotiations, but Joe McCann, president of the Amalgamated Transit Union Local 1724, says they are willing to stay there as long as it takes, even if talks drag on all night.
About 600 employees of the door-to-door transit service for people unable to navigate the conventional transit system have been on strike since last Tuesday, pausing service for all but essential medical trips.
Hundreds of drivers rallied outside TransLink’s head office earlier this week, calling for the transportation provider to intervene in the dispute with Transdev, which was contracted to oversee HandyDART service.
Transdev said earlier this week that it will provide a reply to the union’s latest proposal on Thursday.
A statement from the company said it “strongly believes” that their employees deserve fair wages, and that a fair contract “must balance the needs of their employees, clients and taxpayers.”
This report by The Canadian Press was first published Sept. 12, 2024.
MONTREAL – Travel company Transat AT Inc. reported a loss in its latest quarter compared with a profit a year earlier as its revenue edged lower.
The parent company of Air Transat says it lost $39.9 million or $1.03 per diluted share in its quarter ended July 31.
The result compared with a profit of $57.3 million or $1.49 per diluted share a year earlier.
Revenue in what was the company’s third quarter totalled $736.2 million, down from $746.3 million in the same quarter last year.
On an adjusted basis, Transat says it lost $1.10 per share in its latest quarter compared with an adjusted profit of $1.10 per share a year earlier.
Transat chief executive Annick Guérard says demand for leisure travel remains healthy, as evidenced by higher traffic, but consumers are increasingly price conscious given the current economic uncertainty.
This report by The Canadian Press was first published Sept. 12, 2024.
