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Nestle’s CEO Apologize video released globally remember Covers dozens of infant nutrition products nationas Swiss Consumer goods giants step up efforts to curb potential impact pollute.
The widespread recall threatens Nestlé’s strong market position, particularly in China, where CEO Philippe Navratil has slipped into crisis management mode just months after being appointed to revive the multinational company.
At least 53 countries in Europe, America, Asia and Africa have issued health warnings about Nestlé’s recalled infant formula.
The products are being recalled due to possible contamination with courgette acid, a toxin that can cause nausea and vomiting.
Affected brands include SMA, BEBA, NAN and Alfamino formulawhich may have been affected by quality issues with the arachidonic acid oil (ARA) ingredient from a leading supplier.
In a video posted late Tuesday, Navratil, who is charged with reviving growth through a portfolio review, apologized for the “concern and disruption” the recall has caused parents, caregivers and other customers. He confirmed there have been no confirmed cases related to the recalled batches.
In December, quality issues were discovered at a Nestlé factory in the Netherlands, prompting preventive recalls in several European countries.
A Nestlé spokesperson confirmed: “We have suspended the purchase of ARA oil from the relevant supplier.” The spokesperson declined to name the supplier, but added: “We have restarted production using safe oil from another supplier.” Amsterdam-listed ARA producer DSM said none of its products were affected by Nestlé’s recall. Chinese company Cabio Biotech, whose shares plunged nearly 12% on Jan. 8, did not respond to a request for comment. Cabio previously highlighted its developing relationships with major customers such as Nestlé in its 2024 annual report.
The recall quickly expanded from Europe to major markets such as Brazil, China and South Africa, highlighting the interconnectedness of global supply chains. Nestlé is a major player in China’s infant formula market, which is expected to be worth around 185 billion yuan (£20.5 billion) by 2025. China’s State Administration for Market Regulation last week urged Nestlé to “fulfill its corporate responsibilities” by recalling relevant batches of products and protecting consumer rights.
Barclays analysts pointed to pressure from Chinese authorities, suggesting the issue could cause “considerable damage” to the company, especially in China where mothers are particularly sensitive to such concerns due to previous milk contamination cases involving multiple producers. Nestlé shares, which have fallen about 4% since the recall began in January, rose 0.6% on Wednesday.
