More Companies Join Race To Ease US Baby Formula Supply Crunch

Danone SA DANOY has been doubling shipments to the U.S. of Neocate formula for infants allergic to cow's milk, while Enfamil maker Reckitt is also working to boost supplies amid a nationwide shortage, company executives said.

In February, Abbott Laboratories ABT recalled dozens of Similac, Alimentum, and EleCare formulas, creating one of the most urgent food shortages in recent history for U.S. families.

Reuters reported that Reckitt Benckiser Group RBGLY said it is working "extremely closely" with the FDA to increase supply, including expediting the approval of some products made at a facility in Mexico. 

Read Next: Abbott CEO Says 'We're Sorry About The Baby Formula Shortage,' Ensures Significant Investment For Future.

Reckitt, which supplies roughly half the U.S. baby formula market, said it is also working with the U.S. Department of Agriculture to expand the availability of formula under a program that helps low-income families. 

"The Abbott recall affected 38 markets – it's not only the U.S.," said Magdalena Broseta, Danone's Vice President General Counsel of Specialized Nutrition.

Also See: Baby Formula From Europe Arrives In US: Enough For 9,000 Babies For A Week.

"Their focus is to unblock any logistical situations that other players could be facing," she added. "It's a bit early to say what that would entail."

Broseta said Danone is producing more formula in its Liverpool plant and not rerouting products from elsewhere.

"We will keep on serving our existing geographies at the level of their respective demand," she said.

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