
Similac is owned by Abbott Laboratories (NYSE: ABT), an American multinational health care company headquartered in North Chicago, Illinois. Similac was introduced in 1925 and is the largest infant formula brand in the United States, with approximately 30-35% market share as of 2026. A voluntary recall in 2022 of products manufactured at Abbott's Sturgis, Michigan facility contributed to a nationwide infant formula shortage. In April 2026, Abbott won dismissal of a class action lawsuit alleging Similac contained undisclosed heavy metals.
| Brand | Parent Company | Ownership Type |
|---|---|---|
| Similac | Abbott Laboratories | Wholly owned |
Similac was introduced in 1925 by Abbott Laboratories as one of the first commercially manufactured infant formulas. The name is derived from "similar to lactation." The product was initially distributed primarily through physicians and pharmacies as a medical product.
Over the following decades, Similac evolved in formulation as nutritional science advanced. Abbott invested heavily in clinical research and hospital relationships to maintain Similac's professional recommendation advantage. By the mid-20th century, Similac had become a mainstream consumer product available in grocery stores and pharmacies.
Before the 2022 recall, Similac held an estimated 35-40% of the U.S. infant formula market. Abbott, Reckitt (owner of Enfamil), and Nestle together held approximately 90% of the U.S. market. This concentration meant that when Abbott's Sturgis plant shut down, there were few alternatives for parents.
The 2022 recall was the most consequential event in Similac's history. In February 2022, Abbott voluntarily recalled Similac, Alimentum, and EleCare products manufactured at its Sturgis, Michigan plant following an FDA investigation that found conditions at the facility could allow the growth of Cronobacter sakazakii bacteria. The Sturgis facility closure caused the most acute infant formula shortage in U.S. history, with shelves empty across the country for months.
Abbott invested substantially in remediation of the Sturgis facility and opened a new manufacturing facility in Columbus, Ohio to increase production capacity and reduce supply concentration risk. The FDA created a new office dedicated to food safety and undertook a comprehensive review of infant formula oversight. Congress called for domestic manufacturing incentives and supply diversification.
Post-shortage, the FDA loosened import restrictions, allowing European formula brands like HiPP, Holle, and Kendamil to enter the U.S. market legally. New domestic brands like ByHeart and Bobbie also gained market share by offering alternative ingredient profiles. Similac's market share declined from an estimated 35-40% before the recall to approximately 30-35% as of 2026.
What does Abbott Laboratories own?
Abbott Laboratories owns brands across nutrition (Similac, Ensure, PediaSure, Pedialyte), medical devices (FreeStyle Libre, Volt, TactiFlex, Amulet), and diagnostics (Cologuard, BinaxNOW, Alinity). The company acquired Exact Sciences in March 2026 for $21 billion, adding Cologuard and other molecular diagnostic products.
Is Abbott Laboratories publicly traded?
Yes, Abbott Laboratories trades on the New York Stock Exchange under the ticker symbol ABT. The company has been publicly listed since 1929 and is a component of the S&P 500 Index.
Who founded Abbott Laboratories?
Abbott was founded in 1888 by Dr. Wallace Calvin Abbott, a physician in Ravenswood, Illinois (now part of Chicago). He began by manufacturing reliable dosimetric granules for pharmaceutical use.
Where is Abbott Laboratories headquartered?
Abbott is headquartered in Abbott Park, North Chicago, Illinois, USA. The company operates in more than 160 countries globally.
How many brands does Abbott Laboratories own?
Abbott owns numerous brands across its four segments. Key consumer brands include Similac, Ensure, PediaSure, and Pedialyte in nutrition. Key medical device brands include FreeStyle Libre, Volt, and Amulet. Key diagnostics brands include Cologuard, BinaxNOW, and Alinity.
Who owns Abbott Laboratories?
Abbott Laboratories is a publicly traded company with shares held by institutional investors, mutual funds, and individual shareholders. The company is led by Chairman and CEO Robert B. Ford.
What is Abbott Laboratories' revenue?
Abbott reported Q2 2026 sales of $12.59 billion, up 13.0% on a reported basis and 4.8% on a comparable basis. The company reaffirmed full-year 2026 comparable sales growth guidance of 6.5% to 7.5% and raised adjusted diluted EPS guidance to $5.45 to $5.60.
Did Abbott acquire Exact Sciences?
Yes, Abbott completed the $21 billion acquisition of Exact Sciences in March 2026. The acquisition added Cologuard, a noninvasive colorectal cancer screening test, to Abbott's diagnostics portfolio. Diagnostics sales grew 42% year over year in Q2 2026, the first full quarter including Exact Sciences results.
FDA Regulation: Infant formula is one of the most tightly regulated food products in the United States. The FDA sets strict nutritional standards for infant formula under the Infant Formula Act of 1980. Similac products must meet these standards for composition, labeling, and manufacturing.
Manufacturing Safety: Following the 2022 recall, Abbott invested substantially in remediation of the Sturgis facility and opened a new plant in Ohio. The FDA created a new office dedicated to food safety and undertook a comprehensive review of infant formula oversight.
Clinical Research: Abbott conducts clinical research on Similac formulations, often publishing in peer-reviewed journals. The company maintains relationships with hospitals and pediatricians for product recommendation and research.
Supply Chain: The 2022 shortage highlighted the risk of concentrated domestic manufacturing. Abbott's new Ohio facility and FDA import loosening for European brands have begun to address this concentration, though two companies still hold roughly 60% of the U.S. market.
Environmental Impact: Infant formula production involves dairy farming, packaging, and distribution. Abbott has not published specific environmental targets for its nutrition division. The company's broader ESG reporting covers carbon reduction goals across all operations.
Similac is recognized as the leading infant formula brand in the United States by market share. The brand has received recommendations from healthcare professionals and hospitals over decades of clinical relationships.
#1 Brand Recommended by Pediatricians: Abbott markets Similac as the number one brand recommended by pediatricians, based on physician survey data.
Hospital Discharge Formula: Similac is widely used in hospital discharge programs, where new parents receive formula samples upon leaving the hospital.
2022 Cronobacter Recall and Infant Formula Shortage: In February 2022, Abbott voluntarily recalled Similac, Alimentum, and EleCare products manufactured at its Sturgis, Michigan plant following reports of Cronobacter sakazakii infections in infants. The FDA investigation found conditions at the facility that could allow bacterial growth. The plant closure triggered the most acute infant formula shortage in U.S. history, with out-of-stock rates exceeding 50% in some areas. The facility reopened after extensive remediation. Abbott faced congressional investigations and lawsuits from parents. The company invested in a new Ohio manufacturing facility to reduce future supply concentration risk.
Heavy Metals Class Action Lawsuit (Dismissed April 2026): A proposed class action alleged that Similac infant formula contained undisclosed heavy metals including arsenic, cadmium, lead, and mercury. In April 2026, U.S. District Judge Matthew Kennelly in Chicago dismissed the lawsuit, ruling that the plaintiffs failed to show Similac's packaging would mislead reasonable consumers into believing the product was free of heavy metals. The judge noted that heavy metals are commonly detected in infant formula, breast milk, and food. (Reuters)
Market Concentration Concerns: The 2022 shortage exposed the risks of extreme market concentration in infant formula. Two companies (Abbott and Reckitt) control approximately 60% of the U.S. market. Congress and the FDA have called for supply diversification and domestic manufacturing incentives, but structural reform has been limited.
These competing brands operate in the same categories and provide similar products or services. Compare key attributes to understand market positioning and competitive landscape.
| Brand | Parent Company | Country | Founded | Market Position | Primary Market | Gender Target |
|---|---|---|---|---|---|---|
| Reckitt | UK (Reckitt) | 1959 | Us infant-formula-co-leader | United states | All-consumers |
Market Positioning: Similac competes with 1 brands in the same categories, ranging from mass market to luxury positioning.
Geographic Distribution: Competitors are headquartered across multiple regions, indicating global competition in this market segment.
Brand Heritage: Competitor brands range from established heritage brands to newer market entrants, with founding years spanning several decades.
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