US Retailers Begin Rationing Baby Formula Amid Widespread Shortages

Major US retailers have started rationing baby formula over the weekend amid unprecedented demand and subsequent supply shortages.

Some supermarkets and pharmacies in the US imposed quotas over the weekend on the number of baby formula products consumers can purchase at a time, due to “increased demand and various supplier challenges,” said Wallgreens spokesperson Steve Cohen, as cited by USA Today. Out-of-stock rates for baby formula were sent soaring to 40% between November and April, with some US states even reporting an out-of-stock rate above 50%, latest figures from data analysis firm Datasembly show.

“Inflation, supply chain shortages, and product recalls have brought an unprecedented amount of volatility for baby formula,” explained Datasembly CEO Ben Reich, adding that there is “no indication of a slowdown.”According to CNN, some parents have no choice but to drive hundreds of kilometres to neighbouring states or resort to social media bartering for baby formula. In fact, one parent was quoted by USA Today as saying that “it’s almost a full-time job trying to find Similac.”

Although baby formula producers are manufacturing at full output, current demand continues to outweigh supply. The imbalance has been further worsened by several recalls of powdered formulas amid concerns of bacterial contamination.

Information for this briefing was found via CNN, USA Today, and the sources mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

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