For parents and caregivers of infants and young children requiring formula, 2022 was a stressful year.
Infant formula shortages were considered severe and resulted from pandemic-related supply chain delays, labor shortages, and product recalls. To add insult to injury, a large supply plant responsible for 20% of the nation’s formula supply shut down.
Hopefully, we won’t see a repeat with another formula factory closing…
Follow The Coconut Mama
• For fun lists, healthy living tips, and bar conversation topics, make sure to follow The Coconut Mama. Click here to access The Coconut Mama’s profile page and be sure to hit the Follow button here or at the top of this article!
• Have feedback? Add a comment below!
Shutterstock
Perrigo is a company that owns the rights to many infant formula brands, as well as the well-known Dr. Brown’s line.
With headquarters located in Grand Rapids, Michigan, Perrigo has 38 locations worldwide. According to Perrigo, its Vermont facility (located in the town of Georgia – a little confusing) is “one of only four FDA-approved infant formula manufacturing facilities in the US”.
The bad news? The factory in Vermont is set to phase out production and close by the end of 2027.
Shutterstock
According to Perrigo’s company spokesman, keeping the factory in Vermont open isn’t feasible due to its age and “evolving regulatory requirements.” (There seems to be a lot of similar closures in many areas, including the pharmacy industry…)
These evolving regulatory requirements have a lot to do with the shutdown that led to the severe formula shortage in 2022. We’ll get to that soon, but first, let’s look at which formula brands Perrigo makes that will be impacted.
Shutterstock
Perrigo produces several store brand formulas, such as Walmart’s Parent’s Choice, Kirkland Signature (Costco’s brand), CVS Health, as well as the Good Start line, which was purchased from Nestle in 2022.
There are many other formula brands as well (such as Abbott, Nestle, and Similac), and Perrigo doesn’t rank in the top three leading manufacturers. That doesn’t mean the closure isn’t a big deal, though…
Shutterstock
One of the leading causes of the 2022 infant formula shortage was the closing of one of Abbott’s factories – the Sturgis Facility. This facility is also the largest formula factory in the country, so it was a really big deal.
The facility was closed (and certain formulas recalled) because four babies contracted serious bacterial infections from consuming infant formula made at the Sturgis factory. Sadly, two of those babies died.
Shutterstock
FDA inspectors found many violations at the Sturgis factory, which contributed to the bacterial outbreak and formula contamination.
Later, it was found that the FDA “did not have policies and procedures in place to identify infant formula risks and respond to complaints”, according to a PBS News piece.
According to the FDA, it has “taken multiple steps to improve the resiliency of the infant formula supply”. These changes have had an impact on the Perrigo factory and were cited as one of the reasons for the factory’s closure.
Shutterstock
It turns out that a former Abbott employee had filed a “whistleblower complaint” with the US Department of Labor’s Occupational Safety and Health Administration in 2021 regarding “extremely disturbing” allegations.
The FDA then inspected the plant as a result of the complaint, and performed an investigation at the same time the bacterial outbreak was identified.
This sequence of events made a lasting impact on the formula industry, impacting Perrigo’s closure down the line.
Shutterstock
Other closures are impacting the country’s formula supply as well. Earlier this year, Saputo (a company manufacturing aspects of infant formula, notably whey and galacto-oligosaccharides) announced that it was stepping away from the infant formula market. This impacted its facility in Cornwall (a county in England), with around 80 jobs impacted.
Shutterstock
It seems that layoffs and closures are everywhere, and Abbott (the leading formula manufacturer in the United States) is no exception.
Last year, Abbott closed one of its facilities in Fairfield, California, resulting in the elimination of approximately 200 jobs. While that’s not as alarming as the great formula shortage of 2022, it’s one of many blows formula companies have endured in recent years.
Follow The Coconut Mama
• For fun lists, healthy living tips, and bar conversation topics, make sure to follow The Coconut Mama. Click here to access The Coconut Mama’s profile page and be sure to hit the Follow button here or at the top of this article!
• Have feedback? Add a comment below!
Shutterstock
The closure of the Perrigo factory in Vermont will impact around 420 employees. Perrigo’s company spokesman says Perrigo will offer “redeployment opportunities and workforce support” as well as a severance package for affected employees.
Shutterstock
So what does all this mean?
It’s not great for store brand formulas produced by Perrigo, but we won’t know for sure until the closure happens.
The good news is that there are plenty of formulas produced by other companies, so this isn’t likely to create as much chaos as the formula shortage in 2022 did.
Shutterstock
Remember, Perrigo isn’t stopping formula manufacturing altogether. It’s closing one of its plants (albeit a major factory), but it still has a factory in Covington, Ohio. Perrigo also purchased an infant formula plant from Nestle in 2022, so it doesn’t look like it’s going anywhere anytime soon.
If you or someone you know uses store-brand formulas, the question is obvious…
Shutterstock
Are you worried about the potential impacts of Perrigo’s Vermont facility closing? Share your thoughts in the comment section!
Shutterstock
Leave a Comment