Reckitt announced on Wednesday that short-term sales of its Mead Johnson baby formula powder are expected to be affected after a tornado severely damaged a third-party warehouse in Indiana. The Mount Vernon facility, which is crucial for the Mead Johnson Nutrition business, was hit on July 9 and is currently non-operational, housing both raw materials and finished products.
Fortunately, all employees are safe. The company has redirected all incoming deliveries to alternative warehousing locations across the United States. A spokesperson indicated that certain Nutrition SKUs (product varieties) might experience temporary supply disruptions.
“We are collaborating with customers and suppliers on expedited recovery efforts to minimize disruptions by utilizing our global supply chain and managing inventory at other U.S. warehouses,” the spokesperson stated.
Reckitt confirmed that it has comprehensive property damage and business interruption insurance, which is expected to mitigate the financial impact.
This incident marks the third significant setback for Reckitt this year. In February, an investigation revealed that some employees had under-reported liabilities in the Middle East, resulting in the largest single-day stock drop since December 1999. A month later, the company’s shares fell again after an Illinois jury ordered Mead Johnson to pay $60 million to the mother of a premature baby who died from an intestinal disease allegedly linked to its Enfamil baby formula.
