Dive Brief:
- Baby formula maker ByHeart has acquired its second manufacturing site in weeks, as the company looks to expand its production capacity.
- The New York-based infant formula manufacturer bought the Allerton, Iowa site from DairiConcepts, a subsidiary of Dairy Farmers of America, according to a press release.
- Operations at the site will begin upon FDA approval, which the company expects to receive in the coming weeks, it said in an email to Manufacturing Dive.
Dive Insight:
With the DairiConcepts acquisition, ByHeart now owns and operates three manufacturing sites, including one in Reading, Pennsylvania. It estimates the three facilities will produce enough formula to feed 500,000 infants a year, according to the release.
The company also acquired the packaging facility Cascadia Nutrition earlier in January, giving it complete control over its manufacturing process, the company said at the time.
"Since our launch, we’ve seen incredible demand for our product; the outpouring of positive feedback from ByHeart customers strengthened our conviction to double down on our supply chain in order to provide families with safe and reliable nourishment for their babies,” said ByHeart CEO and co-founder Ron Belldegrun.
Founded in 2016, the company is a relative newcomer to a market dominated by only a few players. This includes Abbott Laboratories, which made headlines last year when it was forced to halt production, causing a nationwide formula shortage.
In Abbott's wake, manufacturers like ByHeart are trying to stake a stronger foothold in the market.
"ByHeart’s acquisition of an additional production facility dedicated to infant formula will yield a crucial incremental supply of infant formula in the US and ultimately contribute to safeguarding the country from future shortages," the company said in the release.
Like Abbott however, the company faced issues last year with product recalls. In December, ByHeart issued a voluntary recall of five batches of its Whole Nutrition Infant Formula due to possible bacterial cross-contamination at a third-party canning facility.
While the company paused shipping products to customers amid its transition to the new packaging facility, it expects to fully reopen to customers in Q2 2023. ByHeart also has plans to enter the retail market in the second half of 2023, the company said in an email.
