Distribution New business South Africa

Nestlé milk formula flows again

Food manufacturer Nestlé said it had resumed delivery of infant milk formula to clinics and hospitals as “most [health] departments have begun to pay” their accounts.

Nestlé stopped supplying the formula after health departments defaulted on payments for up to six months.

Spokesman Theo Mxakwe said Nestlé decided to resume deliveries yesterday because “most departments have begun to pay us now”.

Gauteng's department of health decided to take its own “precautionary measures” while talks with Nestlé over unsettled accounts were concluded.

Spokesman JP Louw said an order for milk formula had been placed with “another producer as a precautionary measure to ensure there is stock available”.

Clinics and hospitals have reportedly been experiencing shortages.

Source: The Times

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