Baby formula shortage: Stores struggle to meet demand

Yahoo Finance Live's Rachelle Akuffo explains the recent baby formula shortage in retailers and which brands are getting recalled over health concerns.

Video transcript

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RACHELLE AKUFFO: Welcome back. Parents are struggling with a lack of baby formula on store shelves. According to Datasembly, the out-of-stock rate for baby formula jumped to 40% in April. It was between 2% and 8% last summer.

Now, Datasembly's CEO blamed supply chain issues, product recalls, and historic inflation. Now, product recalls were exacerbated when Abbott Nutrition's Michigan facility was shut down and recalls made to certain batches of Similac, Alimentum, and EleCare due to FDA concerns over potential bacterial infections, including salmonella. Now, Abbott is a major baby formula supplier.

Now, in terms of stores, CVS and Walgreens are limiting infant and baby formula to three containers per transaction. Target and Walmart are also adding limits.