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Tariffs and quotas, along with the cost of transporting products with limited shelf life, may explain why they do not ship products from their home facilities. While producers in other advanced economies are capable of meeting FDA production and labeling standards, they do not have a significant presence in the U.S. However, Perrigo does not sell its own branded products nationally and thus has a smaller market share than its larger brand name competitors. This shows that profitable production for the sizable non-WIC market is possible. Perrigo, for example, currently supplies store-branded, FDA-approved formula to several national retailers.
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18 The privileged retail treatment given to contract winners appears to make it difficult for new entrants to generate much in the way of sales. A new contract winner in a state typically sees its market share rise by 74 percent, and the market share of the other suppliers declines by an equivalent amount. The guaranteed volume of WIC sales causes retailers to give the contract winner prominent shelf space and product placement, and widespread WIC usage may increase physician referrals for contract brands. What has been made abundantly clear during the national formula shortage is that there is a dearth of long-term solutions to create a more equitable, sustainable food system so that everyone across the nation has access to safe nutritious foods in their community.Ī sole-source contract generates large spillover effects for the winning firm that compensate for the rebates paid to WIC. 9 However, once the immediate crisis abates, many of the challenges that created it in the first place will remain-including market consolidation, supply chain issues, and a lack of policies that prioritize the needs of infants, working parents, and people with disabilities or other illnesses. The Biden administration and Congress are taking steps to address the current crisis and ensure that infant and specialty formula are fully stocked on grocery store shelves. food system is on a small number of big corporations that control the majority market share of everyday grocery items and links throughout the food chain-from seeds and fertilizers to agribusinesses and slaughterhouses to grocery stores and supermarkets. 7 Furthermore, the crisis sheds light on just how reliant the U.S. The formula crisis has resulted in huge inequities, leaving millions of the most vulnerable-such as infants and children, women, grandparents who provide care, people of color, people with disabilities and/or chronic illnesses, LGBTQI+ people, and the elderly-without access to affordable and sometimes life-sustaining food and nutrition in their communities. The issue has been in the spotlight following a report by NBC News earlier this month describing the deaths of teens and young adults who were suspected of buying fentanyl-laced drugs through Snapchat.What has been made abundantly clear during the national formula shortage is that there is a dearth of long-term solutions to create a more equitable, sustainable food system so that everyone across the nation has access to safe nutritious foods in their community. Heads Up is an in-app educational portal that will distribute content from expert organizations - such as Song for Charlie, Shatterproof, Substance Abuse and Mental Health Services Administration and resources from the Centers for Disease Control and Prevention - when people search drug-related keywords on the app, aimed at educating people on mental health and coping mechanisms. The company is also launching a new "Heads Up" feature in Snapchat. Snapchat said over the past year it's been "investing in proactive detection and collaboration with law enforcement to hold drug dealers accountable for the harm they are causing our community." "We have heard devastating stories from families impacted by this crisis, including cases where fentanyl-laced counterfeit pills were purchased from drug dealers on Snapchat," the company said in a blog post. Fentanyl is a synthetic opioid that is 50 to 100 times more potent than morphine and can be deadly even in small quantities. Snapchat on Thursday said it taking steps to stop illegal drug sales on its platform amid an increase in overdose deaths in the US linked to drugs laced with fentanyl.
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