Yesterday it was announced by Abbott Laboratories, the producer Similac baby formula that it is voluntarily recalling particular Similac-brand, powder infant formulas. The cause for this recall is that the certain containers and cans of infant formula may contain small insect parts and beetle larvae. The recall is only possible in the U.S., Puerto Rico, Guam and some countries in the Caribbean. Certain Similac powder product lines that come in 8-ounce, 12.4-ounce, and 12.9-ounce cans are included in the recall while Abbott liquid formula is not a part of the recall.
There is “no immediate health risk” associated with the beetle contamination, although “there is a possibility that infants who consume formula containing the beetles or their larvae, could experience symptoms of gastrointestinal discomfort and refusal to eat as a result of small insect parts irritating the GI tract,” according to the Food and Drug Administration (FDA). The company advised that “If these symptoms persist for more than a few days, a physician should be consulted.”
Immediately the company shut the area down and began the investigation into the matter. The investigation is just coming to its end now, but the company said that it became clear early in the investigation that they were going to have to recall all of the formula that came through that section of their warehouse. The financial impact of the recall will be important for the company, since they have reported that they expect a financial impact of about $100 million. As such, the stock of the company is down $.16 a share.
Abbott Labs recalls Similac baby formula video from youtube: