Reckitt Benckiser Group plc (LON: RKT) is in a “unique position” to address the ongoing baby formula crisis, says Senior Vice President Robert Cleveland.
Cleveland’s remarks on CNBC’s ‘Closing Bell’
The British multinational is waiting for approval from the FDA to bring the product it produces at its Singapore and Mexican facilities to the United States. On CNBC’s “Closing Bell”, Cleveland said:
We’ve submitted paperwork to the FDA. We’re ready to start production as soon as we get the approval. We’ll put the product on the shelves quickly because its under the Enfamil brand where we already have distribution and consumers know the brand.
Also on Thursday, President Biden ordered his administration to mobilize all available tools to ramp up supply of baby formula that meets safety standards.
Reckitt has greatly increased its market share
Since Abbott factory shutdown, Reckitt Benckiser has increased its share in the U.S. market for concentrated formula from 34% to 54%. Speaking with CNBC’s Sara Eisen, the Senior Vice President said:
We’re the 2nd largest manufacturer in the U.S. and so, we were the most able to step up, increase production, and run our plants 24/7. We’ve delivered 30% more to the market than we were a year ago. Absence of a major competitor has put us in that position.
Abbott recalled formula products and closed its Sturgis plant in February, after reports of at least two infants getting sick with Cronobacter sakazakii infections.
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