Global recalls tied to cereulide toxin contamination shake milk-based nutrition brands.
Three of the world’s largest dairy producers — Nestlé, Danone and Lactalis — are grappling with major infant formula recalls that could inflict combined financial losses exceeding $1 billion as concerns over a toxic contaminant spread through global markets. The crisis began with Nestlé’s recall of formula products in more than 60 countries due to traces of the cereulide toxin, and other manufacturers have since initiated their own withdrawals in a widening safety scare.
The cereulide toxin implicated across recalls is a heat-resistant compound produced by Bacillus cereus, linked to foodborne illness symptoms such as nausea, vomiting and diarrhea shortly after ingestion. The contamination has been traced back to a common arachidonic acid (ARA) oil ingredient sourced from a single supplier in China, highlighting how concentrated supply chains in specialized dairy inputs can amplify risk when a critical item is compromised.
Nestlé was first to announce a broad voluntary recall after identifying the contamination during quality checks, pulling infant formulas including brands such as NAN, SMA, Guigoz and Alfamino across dozens of markets. Lactalis later announced the recall of six batches of its Picot infant formula across at least 18 countries, while Danone confirmed more limited recalls linked to potential cereulide risk in certain batches on select markets.
The financial impact of the recall is significant for these dairy multinationals. Barclays estimates suggest that Nestlé’s losses could approach CHF 1 billion (~$1.29 billion) in a worst-case scenario, reflecting the scale of affected products and market reach. Danone’s potential hit is smaller — around €100 million (~$118 million) — yet still material, particularly given that infant formula accounts for a substantial share of its revenue (approx. 21%).
Beyond the direct financial toll, the episode has rattled investor confidence and intensified scrutiny on ingredient traceability and supply chain transparency within the dairy and infant nutrition sectors. Analysts warn that this crisis underscores the risks inherent in highly globalized sourcing and could prompt strengthened testing, regulatory oversight and diversification of critical inputs to rebuild trust with consumers and stakeholders.
Source: LIGA.net – https://biz.liga.net/en/all/prodovolstvie/novosti/toxin-in-infant-formula-nestle-danone-and-lactalis-face-losses-of-more-than-1-billion
You can now read the most important #news on #eDairyNews #Whatsapp channels!!!
🇮🇳 eDairy News ÍNDIA: https://whatsapp.com/channel/0029VaPidCcGpLHImBQk6x1F
