Shares of Danone and Nestlé plummeted on Monday after the French company Vitagermine expanded its recall of infant milk formulas, Reuters reports.
The recall is linked to concerns over contamination of formulas, which has already affected four manufacturers and threatens combined losses exceeding $1 billion.
The three largest dairy companies in the world, Nestlé, Danone, and Lactalis, have recalled large batches of infant milk formulas due to the risk of contamination with cereulide. This heat-resistant toxin is produced by bacteria of the Bacillus cereus genus, capable of multiplying in food products.
The most common symptoms of potential cereulide poisoning are vomiting and diarrhea shortly after consuming the formulas, within 30 minutes to three hours. The symptoms closely resemble those of stomach flu.
The source of contamination is linked to a single Chinese supplier of ARA (arachidonic acid) oil – a critically important ingredient in premium infant formulas.
The contaminated batches have been on sale since January 2025, with expiration dates extending to March 2027. Following the global recall of infant milk formulas by the largest companies in the world, French authorities are investigating the deaths of two infants who reportedly consumed Nestlé infant milk formulas that were recalled due to cereulide contamination.
The French Ministry of Health confirmed to Euronews Health that a causal link has not been scientifically established. Nestlé stated that it continues to monitor the situation and is cooperating with full transparency, providing all necessary information.
According to RTL Nieuws, at least four cases of deteriorating health in infants have been identified in the Netherlands, likely related to the use of Nestlé products.
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