German baby food maker Hipp has moved to maximum capacity to ensure it produces enough formula to meet domestic demand.
Hipp, Germany’s largest baby food maker, is working to avoid shortages it said stem from the growing demand for infant formula made in Germany from Chinese consumers.
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“In the summer, we increased production from five- to seven-days a week. We are now producing seven days a week, 24 hours a day. We are running at full capacity,” a spokesperson for the group told just-food this morning (15 October).
Responding to a massive jump in milk formula tourism, Beijing has introduced regulations blocking Chinese consumers from “bringing suitcases of formula” into the country, the spokesperson said. German retailers have also placed limits on the number of formula cartons that can be purchased at one time. However, the spokesperson added concerns over supply in Germany remain.
“We produce much more now to fill the shops here, it is all for the local market in Germany. We have a distributor in China but he is sold out,” the spokesperson explained.
While Hipp is working at full capacity, the spokesperson revealed the group is not considering investing in new manufacturing facilities or capacity expansion, emphasising the difficulty in securing raw materials. “We are not considering new facilities, we are just keeping up.”
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