As an infant formula shortage grips the US, Nutritional Growth Solutions is seeing growing demand for its toddler Healthy Heights Grow Daily range. mage: Getty
Health & Biotech
As an infant formula shortage grips the US, Nutritional Growth Solutions is seeing growing demand for its toddler Healthy Heights Grow Daily range.
ASX-listed Nutritional Growth Solutions (ASX:NGS) said it has received an uptick in enquiries for its toddler formula in the country.
Non-executive chairman David Fenlon said its whey-based protein-based formulas are produced locally in Utah for the US market.
“It’s well understood the US is facing a significant shortfall of infant formula and it’s affecting families across the country,” Fenlon said.
“We know the devastation it can cause if you have a baby reliant on infant formula and can’t get it.”
The infant formula crisis started in February when major producer Abbott Laboratories closed a manufacturing plant after the US FDA began looking into bacterial infections in infants who had consumed the formula.
US authorities fast-tracked processes to permit international manufacturers to temporarily supply product in the tightly held market. Australian company Bubs is among global companies to send formula to the US.
“I think it’s important that companies like ours or Bubs get involved to help ease the crisis,” Fenlon said.
NGS nutritional products have been developed over a 20–year period by physicians at the world-renowned Schneider Children’s Medical Centre in Israel.
The company has its products broken up into three groups – Healthy Heights Grow Daily 3+, Healthy Heights Grow Daily 10+ specially formulated for the different nutritional needs of boys and girls, and an everyday nutritional children’s protein range, Healthy Heights KidzProtein that includes both dairy and vegan formulas.
“NGS operates in the toddler and children formula space which is pretty much an adjacent category to infant formula,” Fenlon said.
He said demand for the toddler range was strong with shortage in the segment as well.
“We are trying to lean in and help and are seeing our Healthy Heights brands receive more enquiries from retailers,” he said.
“We were in conversations with many of these retailers anyway to put these products on their shelves, but what’s happened is the retailers have reached out to see how quickly we can help.”
Fenlon said with its products for the US produced and approved in the country it currently has no immediate barriers to its supply chain, recently securing a large quantity of whey protein from NZ based dairy producer, Fonterra.
“We have them already available on Walmart.com and in a small range of retailers with the job to be done now extending that range of retailers,” he said.
“It’s really about conversations that were happening; we are trying to expedite them to find our products on shelves quicker.”
NGS also recently made two key appointments to unlock Southeast Asian revenue. The company appointed former Blackmores managing director Peter Osborne
as strategic advisor for China and Southeast Asia.
It has also appointed experienced consumer health executive Mark Sargent as advisor for the Australian market. Sargent has over 20 years’ experience in consumer health, including 18 years at global pharmaceuticals company Bayer.
This article was developed in collaboration with Nutritional Growth Solutions, a Stockhead advertiser at the time of publishing.
This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.
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