Nestlé under fire over “unacceptable” delay in historic infant formula recall

Nestlé is facing what Austrian authorities have described as the largest product recall in the company’s history, as infant formula contaminated with a bacterial toxin is withdrawn from sale across more than 60 countries.

Austria’s health ministry says the recall affects more than 800 products from over 10 Nestlé factories worldwide — figures the company has not verified.

While Nestlé maintains the affected batches represent “significantly less than 0.5%” of annual group sales, analysts have calculated a far higher exposure. US investment bank Jefferies estimates approximately 1.3% of group sales could be affected, representing total exposure of CHF 1.2 billion (US$1.3 billion). Barclays puts the risk at between 0.8% and 1.5% of group sales. 

Nestlé has not detailed how it reached its lower figure, and says no illnesses have been confirmed in connection with the products involved to date.

The F&B giant’s shares have fallen 4.6% since the recall began expanding this week. Infant nutrition sits within the company’s Nutrition and Health Science division, which accounted for 16.6% of total 2024 sales of CHF 91.4 billion (US$101 billion).

The recall centers on the potential presence of cereulide, a heat-stable toxin produced by certain strains of Bacillus cereus bacteria. According to the UK Food Standards Agency, the toxin “is unlikely to be deactivated or destroyed by cooking, using boiling water, or when making the infant milk.” Symptoms include nausea, vomiting, and abdominal cramps, typically appearing within five hours of consumption.

Nestlé has traced the contamination to arachidonic acid (ARA) oil supplied by an unnamed third party. The issue was first identified during self-monitoring at the company’s Nunspeet plant in the Netherlands, which exports infant nutrition products to approximately 140 markets globally.

“Unacceptable” delays 

Consumer watchdog FoodWatch has accused Nestlé and Dutch authorities of a serious breakdown in communication and traceability.

FoodWatch says Dutch authorities were first notified of the contamination on December 9, following lab tests on November 26 that had shown the presence of Bacillus cereus.

Yet when FoodWatch contacted NVWA (Dutch Food and Consumer Product Safety Authority) on December 15, the organization said it was told Nestlé had confirmed no products had been distributed in the Netherlands or Belgium. Three weeks later, Dutch consumers face a recall.

“So either distribution did occur, or the risk assessment and scope changed, or traceability and communication failed,” Nicole van Gemert, director of FoodWatch Netherlands, tells Food Ingredients First. “Consumers deserve a transparent timeline: when authorities and Nestlé first knew, what was known at that time, and why the message to the public was delayed or inconsistent.”

FoodWatch notes that according to French authorities, potentially affected Nestlé products were on sale as early as October 2025. Several European countries — including France, Finland, and Denmark — initiated recalls in mid-December. Yet the public recall in the Netherlands, Belgium, Germany, and Ireland was not triggered until this week.

“If potentially affected infant formula was already on sale as early as October (2025) and authorities were aware since early December, then a global, public recall only in early January suggests a serious breakdown in rapid traceability and risk communication,” says van Gemert. “Nearly a month passed before the recall expanded publicly to dozens of countries. For infant formula, that delay is unacceptable.”Brands affected vary by market and regional details with batch numbers being shared online.

Unknown suppliers and “silent” Christmas recall

Austrian authorities have said Nestlé conducted a “silent” recall over the Christmas period before issuing public warnings. Van Gemert says this action was inadequate.

“For infant formula, a ‘silent’ recall is not an appropriate response when there is a potential unacceptable risk. A silent recall may reduce reputational damage, but it does not protect consumers adequately. Public health must come first, especially for babies.”

FoodWatch is also calling for the unnamed supplier to be publicly identified. “Naming the supplier is part of restoring trust and preventing further harm. It is urgent to ascertain to whom the supplier delivered the potentially contaminated ingredient.”

The organization has submitted seven detailed questions to Nestlé Netherlands and is awaiting a response.

FoodWatch is advising parents not to destroy recalled products — contrary to Nestlé’s guidance — noting that packaging may serve as evidence should families later wish to pursue legal action.

Nestlé’s response

In its product advisory, Nestlé states: “No illnesses have been confirmed in connection with the products involved to date.”

The company says it has completed testing of all ARA oil and corresponding oil mixes and is now working with alternative suppliers to maintain supply. Production has been ramped up at several facilities.

“We understand that this news may cause concern, and we are committed to providing clear, transparent information and support for parents and caregivers throughout this process,” Nestlé said.

The Dutch food safety authority NVWA confirmed that Nestlé’s investigation showed contaminated raw material had been used at multiple production sites, including facilities outside the Netherlands.

Brands affected vary by market but include SMA, Beba, Nestlé Advanced Nutrition, Alfamino, Guigoz, Lactogen, and Nidal. Batch codes and expiry dates for affected products are published on local Nestlé websites and food safety authority portals. The Food Safety Authority of Ireland and the EU RASFF notification provide further details.

Some countries have gone further than the official recall. Vietnam has ordered a halt to all sales of Nestlé powdered milk under the Beba and Alfamino brands, regardless of batch number.

The recall adds pressure on new CEO Philipp Navratil, who was promoted to the role in September following the dismissal of his predecessor Laurent Freixe. The company is reportedly currently cutting 16,000 jobs over the next two years as Navratil seeks to revive growth.

Food Ingredients First has contacted Nestlé for further comment.