French dairy giant Lactalis announced a recall of six batches of its Picot brand infant formula in France and other markets after authorities flagged the possible presence of cereulide, a heat-stable toxin that can trigger vomiting and diarrhea. These batches have been pulled from shelves in at least 18 countries, including Spain, China and Australia, as part of precautionary safety measures.

Meanwhile, Danone confirmed that a batch of its Dumex Dulac infant formula was removed from the Singapore market at the request of the Singapore Food Agency, which cited concerns related to the same contamination issue. The action triggered a sharp sell-off in Danone shares in Paris, illustrating how such product safety scares can reverberate through investor sentiment and brand valuations.

The unfolding crisis has significant implications for the global dairy sector, particularly for manufacturers of infant nutrition products. Nestlé’s prior recall, which affected products in around 60 countries, was already one of the largest in its history and prompted an apology from the company’s CEO. With related recalls by Lactalis and action against Danone products, regulators and industry stakeholders are intensifying scrutiny of raw ingredients and quality controls across formula supply chains.