Foreign buy-up hits baby formula supply
SUE DUNLEVY and SHELLEY HADFIELD News Limited Network January 03, 2013
THE nation's biggest selling baby formula, Karicare Aptamil Gold, is being rationed because Chinese customers are buying it in bulk to send back to their home country, where there are fears over the safety of infant products.
Major supermarkets are also reporting a supply shortage of the Bellamy Organic baby formula.
Some frustrated new parents are being forced to visit multiple supermarkets and pharmacies to search fruitlessly for the products and face the prospect of upsetting their baby by changing brands.
Nutricia, the company which supplies the formula, has confirmed there has been a surge in demand, but says there is enough stock in Australia and they can arrange delivery to mothers in need.
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New mum Caron Steinhardt, who gives Karicare 1 formula to her 16-week-old daughter Georgie Stavrinos, was left stunned when, about four weeks ago, her local Coles in Leichhardt, NSW, ran out of that brand.
"We asked when it was coming back in and they said `we're having trouble getting a shipment,"' she told News Limited.
"So I went to four chemists and none had it. Then I went to Woolworths and they had two tins left and I bought those. Then I started to stress out because I couldn't get it and what happens if in the middle of the night my baby wakes up and I can't feed her?"
Another mother was told by a manager of a Coles supermarket he had been offered money by a Chinese customer if he let him know when the next stock delivery was due in.
Coles confirmed yesterday a number of its stores in NSW had seen unprecedented demand for Bellamy Organic and Karicare infant formulas "and as a result have temporarily run out of these products".
Woolworths said it was "aware of some supply issues regarding baby formula and we are currently working with the manufacturer to secure appropriate supply".
Box Hill pharmacist Angeline Wong, of Pharmore Pharmacy, said she had put a six-tin limit on formula sales.
"It usually doesn't stay on the shelves very long," Ms Wong said.
She said she had sold 200 tins to one customer last year and was constantly getting requests for orders of 100 or 200 tins of Karicare.
A pharmacist at Chemist Warehouse in Footscray said Karicare sales had doubled at the store from the start of the year to October then dropped dramatically in November as stock because difficult to get.
The largest purchase was 18-20 tins, he said.
The store now has a six-tin limit.
Ben Wilson, the retail manager for YouSave chemist in Sydney's CBD, which is situated next to an international hotel, said that "Chinese visitors buy as many cans as they can fit into their luggage to take back to China".
Large sections of the shelves were yesterday empty at Coles in Waterloo, with no sign of stock being replenished soon.
Customers who asked for the Karicare and Bellamy formulas were told by staff that supply was low due to Chinese customers buying in bulk to sell online to families in China.
Amcal pharmacy in Leichhardt has been without Karicare Aptimal Gold for the past two weeks, due to a lack of stock from the supplier.
But down the road at Chemist Warehouse, the shelves were full with both the Karicare and Bellany brands.
Concerns about the quality of baby formula in China are driving the demand.
Ava Dairy Company recalled its baby formula last July after high levels of aflatoxin, a toxin caused by mould, was found in the product.
In 2008, at least six babies died in China and another 300,000 became ill after drinking milk tainted with the toxic industrial compound melamine.
General Manger of Nutricia, Alistair Bradley, said it had increased production of Karicare from 5000 to 20,000 tonnes at its New Zealand factory last year to cope with growing demand and planned a further 50 per cent increase this year.
The demand was being driven by an increase in the number of Australian mums switching from other brands to Nutricia products, he said.
"This, coupled with food safety concerns overseas, has generated an unexpected increase in demand for Karicare and Aptamil formula."
"Given this, we are currently not always able to ensure that adequate amounts of Nutricia Karicare and Aptamil products are available on shelves of some Australian stores."
Mothers unable to find Karicare and Aptamil in Australian supermarkets or pharmacies could order a maximum of two tins per order through the company's online distribution partner, Terry White Chemist, at www.TerryWhitechemists.com.au and expect it to be delivered within 48 hours in a metropolitan area.
Or they could call the company's toll free Careline: Karicare 1800 258 268 or Aptamil 1800 438 500.
