
A nationwide baby formula shortage is getting so bad that Walgreens is now rationing products at more than 9,000 stores across the country.
A company representative for Walgreens told CBS Money Watch that customers are limited to purchasing three units of infant and toddler formula at all of its locations.
The drugstore chain told the outlet that "increased demand and various supplier issues" triggered the decision to impose rationing. The restrictions are in effect until further notice.
Walgreens started reporting supply issues with baby formula back in November. The company said demand for infant formula had skyrocketed and suppliers were struggling to meet orders quickly.
The supply issues were exacerbated in February when Abbot Nutrition issued a massive recall for Similac, Alimentum and EleCare products linked to dangerous bacteria infections in infants. Five infants were hospitalized and two died after consuming the formula.
Nearly 30% of popular baby formula brands may be sold out at retailers across the country, USA Today reported, citing an analysis by Datasembly. The analysis found that for the week of Match 13th, Minnesota had the highest out-of-stock percentage at 54%, followed by Connecticut, Hawaii, Iowa, Louisiana, Maryland, North Dakota, Rhode Island, South Dakota and Texas, all at 40% or higher, according to the report.
The Infant Nutrition Council of America acknowledged the formula shortage, telling CBS that challenges across retail supply chains, from transportation and logistics to some anecdotal evidence suggesting pantry-loading behaviors, have put increased pressure on in-store inventory.
Manufacturers say efforts are being made to increase production.