Abbott to Resume Production of Similac Baby Formula Following Nationwide Shortage

On August 26, nutrition and health company Abbott (NYSE: ABT) announced that it will be resuming production of Similac baby formulas after bacterium contamination reported by four consumers led to a recall in February. Baby formula was already in short supply prior to the recall, and the halt in production at Abbott's Sturgis facility significantly deepened that shortage.

"We know that the nationwide infant formula shortage has been difficult for the families we serve, and while restarting Similac production in Michigan is an important milestone, we won't rest until this product is back on shelves," Abbott's chairman and CEO, Robert B. Ford, is quoted in a company release.

The bacterium that led to the Feb. recall can cause life-threatening infections and inflammation. Four babies fed Abbott's Similac formula became ill, and at least two of those four infants died. However, Abbott says its formula cannot be linked with the babies' illnesses.

In May, the commissioner for the Food and Drug Administration (FDA), Robert M. Califf, told a House panel that Abbott's Sturgis facility was "egregiously unsanitary", with a leaking roof, cracked equipment, and standing water on the floor.

Abbott says that customers can expect to see its Similac formulas return to store shelves after roughly six weeks. The new formula will be subject to additional testing before and after production, according to the company.

"Making infant formula is a responsibility we take very seriously, and parents can feel confident in the quality and safety of Similac and other Abbott formulas," Ford said. "We are committed to re-earning the trust parents and healthcare providers have placed in us for decades."

In order to ensure that the products on store shelves are safe, Abbott reportedly worked closely with the FDA on its quality assurance system. During that adjustment process, the company produced and identified "a couple" of additional batches of formula that were contaminated but says that production was changed to address these issues.

"Abbott is committed to working with regulators, independent experts and others to set a new standard in infant formula safety and quality," the announcement reads. "We know getting your baby high-quality infant formula is your priority and it's ours too."

The company added in its release that production stops and starts may still occur "from time to time", but it has goals to supply 8 million pounds of baby formula to the U.S. this year, higher than 2021's production levels.