Earlier this year, Abbott, one of the country’s largest baby formula suppliers, shutdown it’s Sturgis, Michigan Abbott Nutrition facility due to bacterial contamination. That lead to a national baby formula shortage.
Perrigo is reinforcing industry capacity purchasing Nestle’s Gateway infant formula plant in Eau Claire, Wisconsin for $170 million.
The move is part of Perrigo’s Supply Chain Reinvention Program. The Grand Rapids-based Consumer Self-Care Products company has been struggling to meet consumer demand for its 17 infant formula store brand customers.
In a news release, Perrigo President and CEO Murray Kessler says it’s helping “prevent future infant formula shortages.” To that end, it’s investing $60 million into the Gateway plant expanding its 29 million pound annual production by seven million pounds.
Perrigo is also acquiring the U.S. and Canadian rights to Gerber’s Good Start infant formula brand.
