That sounds more like DARE style bullshit to justify getting angry at people stealing formula. I've definitely heard of baby powder or baby laxative but that's because they react similar to coke by dissolving in water like blow or acting like a numbing agent. Baby formula doesn't numb and it gets milky in water.

It makes no sense from a economic stand point either. People cut drugs to make more money. Most of the shit they use costs next to nothing, isn't watched and definitely isn't locked up.

Yeah it's always assholes looking to resell it. Much like all the theft at hardware stores, with people reselling stolen power tools.

They do get sold directly to some consumers, if its free product its all profit, though both your points are also valid.

People can make drugs from baby formula?!

I completely agree with your sentiment, but I still wouldn't report them. If the odds of them being a parent in need is 10% I'd still look the other way. Shoplifting from a multi-hundred billion dollar business barely feels like theft to me. If that theft is for drug addicts and unfortunate parents I'm not gonna complain.

Now if they're stealing jewelery or other non-necessities I'll point that out, but when it comes to things like baby formula and diapers I didn't see shit.

Edit: In an ideal world baby formula and diapers would be universally free or at least as free and accessible as condoms at many health provider locations. Maybe at Walmart chargers transportation costs while planned parenthood is completely free. Either way we shouldn't be fretting about these things. I feel like this is something the left and right should be able to agree on.