House Panel Launches Investigation Into Baby Formula Shortage

By The Hill
Posted on 05/14/22 | News Source: The Hill

The House Oversight and Reform Committee is launching an investigation into the ongoing baby formula shortage, pressing the four largest domestic manufacturers for documents and information about the steps they are taking to alleviate the crisis.

The four companies — Abbott, Reckitt Benckiser, Nestlé and Perrigo — control nearly 90 percent of the U.S. market for baby formula.

“The national formula shortage poses a threat to the health and economic security of infants and families in communities throughout the country—particularly those with less income who have historically experienced health inequities, including food insecurity,” committee Chairwoman Carolyn Maloney (D-N.Y.) and Rep. Raja Krishnamoorthi (D-Ill.) wrote to the companies.

The lawmakers asked if the companies have enough supply to meet current demand and what steps they are taking to lower prices, prevent price gouging and increase consumer access.

Maloney and Krishnamoorthi said the committee wants a briefing and responses from the manufacturers by May 26.  

Retail supply of formula has been spotty for months because of supply chain pressures and labor shortages, but the situation dramatically worsened in February with a nationwide recall of products made by Abbott Nutrition and subsequent shutdown of one of its key manufacturing plants because of contamination concerns.

The recall was sparked by four reports of a rare bacteria that causes deadly infections in babies. Two infants died. 

The committee said it is seeking documents from Abbott relating to the conditions at its Sturgis, Michigan, plant that led to the recalls of several of its infant formula products. Abott is one of the largest suppliers of formula in the country, and the Sturgis plant specifically was the manufacturer of much of the country’s supply of specialty formula.