Reckitt’s baby formula sales to suffer after tornado damages warehouse

(Reuters) — Sales of Reckitt’s Mead Johnson baby formula powder are likely to take a short-term hit after a tornado damaged a third-party warehouse in Indiana, the British consumer goods company said Wednesday

The Mount Vernon warehouse, out of action since the tornado struck July 9, is an important site for the company’s Mead Johnson Nutrition business, containing both raw materials and finished products, Reckitt said.

The company could not estimate when the warehouse would be up and running again but said it was working as quickly as possible with local authorities and regulators to minimize the disruption. It said it diverted deliveries to other warehouses in the U.S.

“We are partnering with customers and suppliers on expedited recovery efforts to minimize disruption by leveraging our global supply chain and managing inventory at our other U.S. warehouses,” a company spokesperson said.

Reckitt said Wednesday it had comprehensive property damage and business interruption insurance, which it expects will largely offset the impact on earnings.