Danone increases infant formula shipments to US to tackle shortage: Reuters

Danone S.A. DANOI possesses intensified shipments infant formula from Europe to fill a shortage in the United States, according to analysis of ocean freight data by US Customs data and shipping consultancy Ocean Audit for Reuters.

Danone is the second largest formula maker in the world, but a relatively small player in the United States

It shipped most of the produce from Britain and the Netherlands by ocean freight through its subsidiary Nutricia North America.

Read also : Abbott’s Troubled Baby Formula Michigan plant to reopen in 1-2 weeks: Reuters.

Danone’s Nutricia division more than tripled its ocean imports to North America between January and May. More than 90% was delivered to the United States, said Steve Ferreira, CEO of Ocean Audit, which analyzed the data exclusively for Reuters.

Ferreira said his data showed that from Jan. 1 to May 1, 2021, Danone Nutricia sent nearly 770,000 boxes of infant formula, filling about 100 freight containers, to North America. For the comparable period this year, the number skyrocketed to more than 2.4 million cans, he said.

“Abbott appears to have lost about 2,000 basis points of share, falling from 40% to 20%,” said Barclays analyst Warren Ackerman, referring to the US market.

Reckitt Benckiser Group RBGLYnumber 2 in the United States, told Reuters it now accounts for more than 50% of the country’s total infant formula supply.

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