Reckitt Benckiser RBGLY 0.75% Group PLC is to import infant-formula powder to the U.S. from a facility in Singapore, in what it stated is the biggest contribution so removed from a producer geared toward mitigating a nationwide components scarcity.
The Enfamil proprietor stated it might ship the equal of 66 million 8-oz.bottles of base toddler components powder between now and November—sufficient to feed greater than 130,000 infants a month, on common. The powder is ready to start delivery this month to a facility in Minnesota, the place it should then be blended and packaged for distribution.
Child components has been in brief provide for months. Shortages initially stemmed from supply-chain points brought on by the pandemic and have been then exacerbated by product recollects and a manufacturing halt by Abbott Laboratories, ABT 1.81% which makes the Similac model.
Abbott not too long ago restarted manufacturing of some specialty components at its Sturgis, Mich. plant, however on Wednesday the corporate stated it had paused operations after thunderstorms flooded a part of the power.
A number of different producers have stated they might increase manufacturing and import components provides into the U.S. to assist alleviate shortages, together with Gerber proprietor Nestle SA and France’s Danone SA .
Reckitt has beforehand stated it’s working its factories 24/7, together with on Sundays, to extend manufacturing. The corporate has additionally narrowed the product strains it makes to extend volumes, specializing in sizes it says permit it to offer essentially the most components.
Enfamil’s U.S. market share was 35% final yr, in line with Euromonitor, however that has grown in latest months amid the Similac scarcity.
The Meals and Drug Administration stated the Reckitt imports can be used to fulfill contractual obligations beneath the federally funded program, often called the Particular Supplemental Vitamin Program for Girls, Infants, and Youngsters.
The powder imported will probably be Enfamil Stage 1, for infants aged new child to 6 months.
Write to Saabira Chaudhuri at saabira.chaudhuri@wsj.com
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