Reckitt, the parent company of Mead Johnson Nutrition, which produces Enfamil baby formula, has announced potential disruptions to its product supplies following a tornado that severely damaged its warehouse in Mount Vernon, Indiana. The tornado, part of a cluster generated by the remnants of Hurricane Beryl, struck on July 9, causing significant harm to the facility, described as critical for Mead Johnson Nutrition’s operations.
The warehouse, managed by a contractor, stores both raw materials and finished products. Although Reckitt regained access to the site on July 13, operations have not yet resumed. As a result, inbound deliveries have been redirected to other warehouses across the United States. This shift could lead to temporary shortages of certain baby formula products in the near term, according to statements made to CBS MoneyWatch by Mead Johnson.
Reckitt is actively working with its customers and suppliers to expedite recovery efforts, utilizing its global supply chain and managing inventory at alternative U.S. locations. The company plans to provide further updates on the situation during its quarterly earnings call on July 24.
In addition to operational impacts, Reckitt anticipates that the tornado will affect its short-term sales. Despite these challenges, the company remains committed to minimizing disruption by leveraging its supply chain capabilities and business interruption insurance policies.
This situation echoes previous challenges faced by U.S. parents and caregivers in securing infant formula, notably during the 2022 pandemic disruptions and the closure of a key Abbott Nutrition plant in Sturgis, Michigan, due to bacterial infections.
