LOUISVILLE, Ky. (WAVE) – Louisville-area businesses said they hope relief is on the way for baby formula shortages.
“It should start to ease,” James Neumann, president of ValuMarket and chairman of the Kentucky Grocers Association said.
The Abbott Nutrition factory in Michigan has reopened after a failed FDA inspection shut down production. The facility is expected to be running at full capacity by next week.
Neumann said the customer should see the effect relatively soon.
“They feel it’s going to pretty quickly get to market,” Neumann said.
Still, Neumann said there are larger issues at play that could allow a shortage to happen again. He and the KGA were in Washington D.C. this week, asking lawmakers to strengthen enforcement of antitrust laws.
“When you look at formula and the fact that there’s only three manufacturers, that’s a problem, but it’s really a symptom of the overall antitrust that’s out there,” Neumann said. “You have five power buyers in my category, in the grocery space in the U.S., that represent nearly 70% of all grocery retail.”
“Well, they’re so powerful, they’re able to tell companies yes and no when price increases want to happen and they can force companies out of business or force consolidation, which gets to where we’re at today,” Neumann added. “Where we don’t have enough companies that are producing this because of the economies of scale needed to satisfy these power buyers. It doesn’t allow for good competition.”
At his Outer Loop store, Neumann said baby formula stock has been low, but manageably so. On his most recent order sheets, baby formula products are listed as “unavailable from manufacturer” for at least several more days.
Even as product makes its way back to shelves and bellies, Neumann said there remains another concern, one apparently shared by the Kentucky governor and attorney general: price gouging.
“Formula has traditionally been one of the largest stolen items in grocery stores in quantities,” Neumann said. “They literally steal enough formula to go and repackage back into cases and then sell onto black markets… trying to resell on eBay or flea markets or some kind of a third-market place and try to take advantage of the situation, of the scarcity.”
Kentucky Attorney General Daniel Cameron’s office is asking the public to report price-gouging here.
At stores like Neumann’s, he said that won’t be an issue.
“No legitimate retailer in our state is ever going to price gouge on something like this, or anything,” Neumann said.
Another solution to the crisis is formula from overseas. While red tape has been an issue, soon Target stores are set to sell Kendamil, a UK-made baby formula.
Target responded to WAVE News’ request for comment with the following statement:
“Target is proud to partner with the federal government to help ensure American families have access to baby formula and we will work urgently to receive and distribute Kendamil formula online and in our stores. We will share more information in the coming weeks, once the product is available. As we move forward, product limits will continue to be in place in stores and online to ensure access for as many guests as possible.”

Copyright 2022 WAVE. All rights reserved.