Laura Modi: Innovating the Infant Formula Industry

Laura Modi, who co-founded and leads Bobbie, an innovative startup focused on infant formula, is dedicated to shaking up an industry she believes has been stagnant for far too long.

Previously part of Airbnb's team, Modi was inspired to start Bobbie after her first child was born. She recalls feeling ashamed when buying infant formula, which was a major catalyst for her venture.

"As I purchased formula, I preferred it to be hidden, feeling uneasy about what I was buying," Modi shared in a podcast interview with CNBC's Julia Boorstin.

For Modi, the embarrassment stemmed not just from personal feelings but from recognizing a market that seemed averse to change.

"While the food industry has evolved over the decades, featuring updated versions of everything from granola bars to sodas, infant formula seemed trapped in the past," Modi observed.

The infant formula sector is a significant market where existing players lacked incentives to innovate. This, Modi believes, needs to change.

A 2022 shortage highlighted vulnerabilities in this duopoly, which had long been dominated by Reckitt and Abbott, who together held about 70% of the market that year.

This shortage revealed the dangers of such concentration, prompting a reassessment of the formula supply chain.

"We all assumed infant formula would always be available," said Modi, referencing a comment by a U.S. president that shocked many into realizing the gravity of the situation.

Since its inception in 2018, Bobbie has made significant strides, emphasizing product excellence. The company launched the first and only USDA Organic Whole Milk infant formula produced domestically.

Rather than traditional marketing, Bobbie advocates for social issues like paid family leave, highlighting broader societal concerns and how they relate to parental needs.

Bobbie's products became available in 2021, pioneering a direct-to-consumer, subscription model for formula that now expands across major retailers.

Navigating the intersection of social advocacy and business can be challenging. Recently, Modi faced criticism after participating in a government-organized roundtable with controversial figures in attendance.

Modi defends her decision to attend such meetings, stressing the need for her voice and those of mothers to be heard in discussions traditionally dominated by men.

Running a burgeoning business while being a parent to four children requires careful juggling. Modi employs a strict personal and professional evaluation process daily.

Supply chain resilience remains a primary concern for Modi. Bobbie has invested in infrastructure and safety by establishing a new manufacturing plant in Ohio.

"Formula production involves stringent regulations akin to pharmaceuticals. It's crucial to maintain high safety and quality standards," Modi remarked, underscoring the long-term commitment required in this field.