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FHB urges powdered formula trade to ensure sufficient supply during Labour Day long weekend
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     The Food and Health Bureau (FHB) today (April 17) met with representatives of seven major powdered formula suppliers, the Hong Kong General Chamber of Pharmacy Limited and major chain stores to follow up on the progress of implementing improvement measures for the powdered formula supply chain, and to urge the trade to ensure sufficient supply of powdered formula for local infants and young children during the upcoming Labour Day long weekend.

     At the meeting, the suppliers and retailers briefed the Government on the progress of the improvements to the powdered formula supply chain, and the measures implemented before the Labour Day long weekend to ensure sufficient supply of powdered formula for local infants and young children. The suppliers stressed that they had reserved sufficient stock for local infants and young children to cope with orders from various pre-ordering channels. They had also strengthened supporting measures, including more frequent replenishment of stock if needed, and boosting the manpower for manning the hotlines when required so that all calls from customers can be returned within 24 hours.

     As regards the Coupon Scheme, the suppliers and the pharmacies concerned will continue to promote the Scheme through various channels. The suppliers have also incorporated appropriate anti-counterfeit features into the coupon design.

     A spokesman for the FHB said, "We anticipate that during the Labour Day long weekend, demand for powdered formula for infants and young children may be rather strong. The suppliers and retailers must therefore continue to implement the various supply chain improvement measures and to get fully prepared in every aspect."

     The seven major powdered formula suppliers have already set up various pre-order channels. Apart from the Coupon Scheme, orders may also be placed through suppliers' hotlines for home delivery or collection at chain stores. Through separating local demand from non-local demand, these channels can act as a "dedicated supply chain" to ensure sufficient supply of powdered formula for local infants and young children.

     At the meeting, the FHB requested the seven major powdered formula suppliers and retailers participating in the pre-order services to continue promoting the pre-ordering services through various channels.

     "In a tight market situation, parents of local infants and young children can choose to buy powdered formula through the pre-order services without being affected by the retail market situation. The trade has reaffirmed at today's meeting that parents placing orders through the above channels will receive powdered formula within three working days (excluding Saturdays and public holidays) after confirmation of the orders," the spokesman said.

     To get a good grasp of the market situation, the FHB has commissioned a consultant to conduct regular surveys on the supply and price levels of powdered formula at the local retail level. The surveys concerned will commence before the Labour Day long weekend. The FHB will later conduct another survey to gauge the experiences of parents of local infants and young children in purchasing powdered formula and their attitudes towards using various pre-order services in purchasing powdered formula. The FHB will submit the relevant reports to the Committee on Supply Chain of Powdered Formula to seek their further views on how to improve the supply chain.

     The FHB will continue to closely monitor the supply of powdered formula and maintain close liaison with the trade to ensure sufficient supply of powdered formula for local infants and young children.

Ends/Thursday, April 17, 2014
Issued at HKT 20:47

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