Current:Home > MarketsTornado damage could affect baby formula supplies, Reckitt says-InfoLens
Tornado damage could affect baby formula supplies, Reckitt says
View Date:2024-12-23 10:49:17
Baby formula maker Reckitt said supplies of some of its nutrition products are likely to be affected by a tornado that damaged one of its warehouses in Mount Vernon, Indiana.
Reckitt, a British consumer goods company, owns Mead Johnson Nutrition, the maker of Enfamil baby formula products. Reckitt on Wednesday said that the tornado, which struck on July 9, caused "significant damage" to the warehouse, which the company called "an important site for the Mead Johnson Nutrition business." The facility, which is operated by a contractor, houses both raw materials and finished products.
A cluster of at least four tornadoes whipped up by the remnants of Hurricane Beryl barreled through Indiana's southwestern corner, with winds up to 140 mph.
The twister that hit Mount Vernon and other parts of Posey County grew to about 300 yards wide and left a trail of damage nearly six miles long, collapsing much of a warehouse, derailing train cars, damaging mobile homes and ripping roofs off homes.
While Reckitt said that it regained access to the warehouse on July 13, the facility is not yet operational. In the meantime, all inbound deliveries have been diverted to other warehouses in the U.S., the company said.
That could mean temporary shortages of some of its baby formula products in the near future. Mead Johnson told CBS MoneyWatch that supplies of some of its nutrition products "will likely be affected in the short term."
"We are partnering with customers and suppliers on expedited recovery efforts to minimize disruption by leveraging our global supply chain and managing inventory at our other U.S. warehouses," Mead Johnson added in a statement.
Reckitt is still assessing the damage to the warehouse and said it would provide on update on its quarterly earnings call on July 24.
Reckitt also said the weather event will affect the company's short-term sales. The company is "working closely with all our stakeholders including customers and suppliers, to minimize disruption, by leveraging our global supply chain and managing inventory at our other North American Nutrition warehouses and held by our retail partners," the company said.
Reckitt added that it expects its property damage and business interruption insurance policies to mitigate the impact of the temporary facility closure on company earnings.
Parents and caregivers around the U.S. faced a severe shortage of infant formula in 2022 as the pandemic disrupted global supply chains. Compounding the problem was the closure of a Sturgis, Michigan, plant operated by Abbott Nutrition, a major manufacturer of baby nutrition products, because of bacterial infections.
- In:
- Hurricane Beryl
- Tornadoes
- Tornado
Megan Cerullo is a New York-based reporter for CBS MoneyWatch covering small business, workplace, health care, consumer spending and personal finance topics. She regularly appears on CBS News 24/7 to discuss her reporting.
veryGood! (58)
Related
- Ex-Duke star Kyle Singler draws concern from basketball world over cryptic Instagram post
- Athletics bid emotional farewell to Oakland Coliseum that they called home since 1968
- Missy Mazzoli’s ‘The Listeners’ portraying life in a cult gets U.S. premiere at Opera Philadelphia
- Florida man files a lawsuit to prevent Ohtani’s 50th HR ball from going to auction
- RHOBH's Kyle Richards Addresses PK Kemsley Cheating Rumors in the Best Way Possible
- Could Caitlin Clark be the WNBA all-time leading scorer? Here's when she could do it
- Don't ask the internet how much house you can afford. We have answers.
- 'Wolfs' review: George Clooney, Brad Pitt bring the charm, but little else
- Seattle man faces 5 assault charges in random sidewalk stabbings
- Could Caitlin Clark be the WNBA all-time leading scorer? Here's when she could do it
Ranking
- North Carolina offers schools $1 million to help take students on field trips
- 2024 People's Choice Country Awards Red Carpet Fashion: See Every Look as Stars Arrive
- Chicago White Sox sweep Los Angeles Angels, remain at 120 losses on season
- Savannah Chrisley Speaks Out After Mom Julie Chrisley’s Sentence Is Upheld
- The Masked Singer's Ice King Might Be a Jonas Brother
- Dallas Cowboys pull out win in sloppy Thursday Night Football game vs. New York Giants
- Stevie Nicks releases rousing feminist anthem: 'May be the most important thing I ever do'
- 2024 PCCAs: Brandi Cyrus Reacts to Learning She and Miley Cyrus Are Related to Dolly Parton
Recommendation
-
SNL's Chloe Fineman Says Rude Elon Musk Made Her Burst Into Tears as Show Host
-
Skip new CBS reality show 'The Summit'; You can just watch 'Survivor' instead
-
Pink denies rumors that she wiped social media accounts after Sean 'Diddy' Combs' arrest
-
At the New York Film Festival, an art form at play
-
The Office's Kate Flannery Defends John Krasinski's Sexiest Man Alive Win
-
Travis Kelce's Ultimate Weakness Revealed—By His Mom Donna Kelce
-
NFL bold predictions: Which players, teams will surprise most in Week 4?
-
2024 PCCAs: Brandi Cyrus Reacts to Learning She and Miley Cyrus Are Related to Dolly Parton