Nestle Expands Infant Formula Recall in Europe After New EU Toxin Testing Rules

Nestle has expanded its ongoing infant formula recall to include additional batches of Guigoz products in France and SMA products in the United Kingdom, following updated analytical methods introduced by the European Union to detect the cereulide toxin. The development comes despite earlier expectations from analysts that no further product withdrawals would be necessary.

The recall underscores growing regulatory scrutiny around infant nutrition safety, especially as new testing techniques reveal potential risks that were previously undetected.

Why Nestle Expanded the Recall

EU Introduces New Testing Methods for Cereulide

The expanded recall was triggered after the European Union updated its methods for analysing cereulide levels, a toxin known to cause nausea and vomiting. According to a letter seen by a news agency, the European Commission last week requested member states to test liquid infant formulas for cereulide levels in addition to powdered formulas.

Liquid formula products can exhibit higher detectable levels of cereulide compared to powdered versions, increasing the likelihood of exceeding safety thresholds under stricter analysis.

Nestle’s Official Statement

In response to the revised EU testing framework, Nestle confirmed that it had added a limited number of additional batches to the recall list.

"In light of the evolved EU method of analysis, and continuing to apply our strict internal standards for cereulide in infant formula, we are adding a few batches in some European countries that were already part of the initial recall," Nestle said in a statement.

The company clarified that no new countries have been added to the recall list.

Scope of the Recall

Countries and Regions Affected

While Nestle did not disclose the exact number of countries impacted by the latest expansion, it confirmed that the initial recall affected around 60 countries, primarily across:

• Europe

• Asia

• The Americas

The recall includes Guigoz infant formula in France and SMA infant formula in the UK, with Britain’s Food Standards Agency confirming on Tuesday that another batch of Nestle’s SMA Advanced First Infant Milk is being withdrawn.

Regulatory Standards and Safety Limits

Nestle stated that its internal safety limit for cereulide is 0.2 ng/g, which is stricter than the European Food Standards Agency (EFSA) guidance level of 0.43 ng/g. The voluntary nature of the recall suggests that Nestle detected cereulide levels above its own internal threshold, even if they may not exceed the newly set regulatory limit.

France also lowered its national safety limit for cereulide on Saturday, aligning with EFSA’s recommendations, which formally introduced its threshold on Monday.

Source of the Contamination

Supplier Identified in China

Nestle first detected low levels of cereulide in product samples in late November. However, it was only on December 24 that the company confirmed the source of contamination as an oil blend containing arachidonic acid oil (ARA).

France’s agriculture ministry later identified the supplier of the contaminated oil as Cabio Biotech (688089.SS), a Chinese company. Cabio Biotech’s shares have fallen around 18% this year, and the company has not responded to Reuters’ requests for comment.

The contaminated ingredient was reportedly supplied to several infant formula manufacturers, including Nestle, Danone, and Lactalis, prompting recalls in dozens of countries and raising widespread concern among parents.

Market and Analyst Reaction

Analysts Had Not Expected Further Recalls

Earlier this week, analysts at Barclays and Jefferies stated they did not anticipate additional recalls for Nestle or Danone following the updated EU safety limits. However, the new testing requirements—particularly for liquid formulas—appear to have altered the risk assessment.

Despite the developments, market sentiment remained relatively stable. Nestle’s shares were 1.6% higher by 1344 GMT, while Danone’s shares rose 1.3%, both recovering from multi-month lows recorded in late January as the recall situation unfolded.

Ongoing Investigation in France

Infant Deaths Under Examination

French authorities are currently investigating a possible link between two infant deaths and the recalled Guigoz formula. However, both the authorities and Nestle have stressed that there is no evidence so far connecting the deaths to the affected products. The investigation results are expected in the coming days.

Conclusion

Nestle’s decision to expand its infant formula recall highlights the impact of evolving regulatory standards and advanced testing methods on food safety oversight. While no new countries have been added to the recall, the inclusion of additional batches in France and the UK reflects the company’s adherence to internal safety thresholds that exceed current EU guidelines.

As regulators continue to refine detection techniques and investigate potential health links, the episode underscores the complexity of global supply chains and the heightened sensitivity surrounding infant nutrition. Parents and caregivers are advised to follow guidance issued by local food safety authorities while investigations continue.