Several European countries, including Austria, Hungary, Germany, Poland, Romania, France, and Switzerland, have recalled Aptamil and Milumil baby formulas due to possible contamination with the toxin cereulide, which causes vomiting and diarrhea, Bloomberg reports.
This has become the largest recall in Danone's history, which derives about a third of its revenue from the sale of baby formulas.
The website of the Food and Veterinary Service of Latvia, which monitors food safety in the republic, mentions nothing about the dangers of Danone's products.
Analysts at Barclays previously estimated that the recalls could cost Danone up to 100 million euros. The company's shares have lost 6.5% of their value since the beginning of the year.
The crisis related to the contamination of baby formulas is global and has affected not only Danone but also other manufacturers such as Nestlé and Groupe Lactalis.
The source of the contamination was a supplier of arachidonic acid oil, which is used as an additive in baby formulas. Although none of the companies have officially named the source of the problem, the supplier has been identified as the Chinese company Cabio Biotech Wuhan.
Danone began recalling specific batches of products in mid-January.
