MELBOURNE (CU)_The United States is currently facing a shortage of infant formula and international brands are to import tins amid the crisis. They will be joined by an Australian dairy company, as the crisis paves the way for overseas players to enter the US market.
Nature One Dairy manufactures more than 20 million tins of infant formula for the Australian and Asian markets each year. The company is looking to assist the US in tackling the formula crisis, and is currently working with the Victorian government to secure approval from the Victorian government infant range products. “Being both a manufacturer and brand owner, we can scale up our supply and provide our high-quality Australian-made products to support the current situation in the United States,” Nature One Dairy’s chief executive and founder Nick Dimopoulos said.
Meanwhile, one of the company’s major competitors a2 Milk amid growing shortage in infant formula in the US after multinational Abbott Laboratories was forced to close its Michigan plant, after two babies died and four fell ill after consuming formula manufactured at the plant.
Some of the major international brands are looking to cash in on the crisis, particularly owing to the fact that historically, it has been difficult for overseas players to break into the US market since the government purchases more than half the formula consumed via its nutrition assistance programme and then resells them to retailers at reduced prices to increase affordability.
According to Tom Kierath, head of consumer research at Barrenjoey, the fact the US infant formula market is very consolidated has meant that it is caught short in the event of a contamination “What is unclear is if the recent contamination events will lead to a more permanent place for global brands in the US IMF industry, which could prove to be an opportunity for the a2 Milk Company,” he said.