Baby Formula Shortage Worsens As Stock Drops Below 60% In Some States

Despite efforts to restart the baby formula plant at the epicenter of the US crisis, and millions of bottles of the product being flown in from aboard by the government, shortages are still raging in many states.

Nationwide, the latest in-stock figure for baby formula powder was at 70% for the week ending July 3, down from 77% in the week ending June 5, according to data from IRI Worldwide. The market-research firm tracks inventory of the product across more than 125,000 stores in the US. Rates were hovering at 90% before the February recall and factory shutdown for Abbott Laboratories, which accounts for a large share of the nation’s supplies.

States with the Least Formula

The hardest hit states, with inventory levels below 60%, include Utah, Wyoming, Kansas and Colorado. Alaska has the biggest shortfall, with an in-stock rate at 51%, down from 65% a month ago, IRI data show. The state with the best supply situation is New York at 81%, down from 84% for the week ending June 5.

Shortages have primarily impacted powdered formula, which accounts for more than 80% of the nearly $5 billion market for baby formula, said Krishnakumar Davey, IRI’s president of client engagement. Ready-to-drink formula which is more expensive, comprises a smaller fraction of the market and hasn’t been as heavily affected by the situation.

Metro Areas with the Worst Inventory

For metro areas, 10 regions have in-stock rates below 60%. Wichita, Kansas, has the biggest shortfall at 55%, down from 66% a month ago.

The US Food and Drug Administration issued an update on July 8 statin\g that it has secured 4.875 million cans, or about 121 million full-size, 8-ounce bottles, of Australian infant formula, which will be shipped starting in the first week of August to as many as 20,000 retail locations nationwide.