How Iran war disruption is affecting this infant formula company
Tuesday, 14 April 2026
The Post's Under The Pump is a new series investigating how the global fuel crunch is disrupting New Zealand businesses - but more importantly, how they’re planning to survive.
The global oil shock and uncertainty caused by five-weeks of war in the Middle East is having far-reaching impacts on companies, even on this side of the world.
Auckland-based infant formula company LittleOak says it has been forced to halt its expansion into the Middle East, though it has not yet seen supply disruption or shipment delays to its export markets.
LittleOak founder and chief executive Elke Pascoe told The Post the goat-milk formula company had felt the effects of the conflict, now paused under a two-week ceasefire deal agreed between the US and Iran.
“We've seen some price increases across the board. We've had to shut down our entire online business into the Middle East because we can't get anything in there, which is a real shame.”
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Pascoe said the company had been working with a distributor in the Middle East, with a planned market launch into the UAE in coming months, but those plans were now uncertain.
“We were supposed to be launching at the Baby Show in June, but that's not going to happen now, because that's been postponed until September. But once they get some sort of resolution, we'll be quick to start up the engine again and get our plans back on track.”
While the company had faced some disruption from the conflict, Pascoe said LittleOak had been sheltered from far more serious impacts thanks to its warehousing, with stock held in key markets such as in the North America, Singapore and Australia.
She said the company had built a complex but effective network that kept disruption to a minimum during external shocks.
Pascoe said even once the conflict was resolved, there would likely be a lag in expected logistical disruptions and cost increases.
“We're just taking everything on a week-to-week basis.
“Naturally, it takes a lot to launch into a new market, a lot of resources internally, so sometimes we find that when it all gets a bit too much it's better just to focus on what you've got in front of you.”
Britain, Vietnam and further expansion into the US are in its plans for new market launches this year.
The company, which has been operating for 10 years and produces its formula in Hamilton, sells to 74 countries.
Australia is LittleOak’s largest market, followed by America, where it is sold in retail stores, including Sprouts and Mother’s Market.
Pascoe said it was the fastest growing infant formula brand in Australia and Singapore.
The business has been focused on new product innovation in recent years and is now rolling out its improved formula to retailers, having switched from sunflower oil to cold‑pressed olive oil.
“One of the things I've always wanted to do since I started the company was make sure there were no seed oils. But we've been restricted in many ways with the different regulations the government imposes and the guidelines we have to meet.
“When we first launched we used cold-pressed flaxseed oil from New Zealand, with a combination of canola and sunflower oil. We needed the sunflower oil to meet the final fatty acid profile of breast milk,” Pascoe said.
But since then the company had been working on replacing some of the sunflower oil with olive oil.
“We had a bit of a breakthrough about two years ago, where we were able to work through the science and breakdown of the profile of the different oils, and realised we could swap out high oleic sunflower oil for olive oil. We're the first in the world to do that, which is really exciting.”