Nestle CEO issues apology video for infant product recall spanning 53 countries

Nestle’s chief executive has issued a video apology following a global recall of infant nutrition products across dozens of countries, as the Swiss consumer goods giant steps up efforts to contain the fallout from potential contamination.

The widespread recall threatens Nestle’s strong market position, particularly in China, placing CEO Philipp Navratil in crisis-management mode just months after his appointment to revitalize the multinational.

At least 53 countries spanning Europe, the Americas, Asia, and Africa have issued health warnings concerning infant formulas recalled by Nestlé.

The products are subject to recall due to possible contamination with cereulide, a toxin capable of inducing nausea and vomiting.

The affected brands include SMA, BEBA, NAN, and Alfamino formula, which were potentially compromised by a quality issue in an ingredient known as arachidonic acid oil (ARA) from a leading supplier.

In a video published late on Tuesday, Navratil, who is tasked with reviving growth through a portfolio review, apologised for the "worry and disruption" the recall has caused for parents, caregivers, and other customers. He confirmed that there have been no confirmed cases of illness linked to the recalled batches.

Nestle identified a quality concern at one of its factories in the Netherlands in December, prompting a precautionary recall across several European nations.

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A Nestle spokesperson confirmed: "We have suspended sourcing ARA oil from the supplier concerned." The spokesperson declined to name the supplier but added: "We have already restarted production using safe oil from another supplier." Amsterdam-listed ARA producer dsm-firmenich stated that none of its products were affected by the Nestlé recall. Chinese company Cabio Biotech, whose shares plunged almost 12 per cent on 8 January, did not respond to a request for comment. Cabio had previously highlighted its developing relationship with major clients like Nestle in its 2024 annual report.

Highlighting the interconnectedness of global supply chains, the recall rapidly expanded from Europe to major markets including Brazil, China, and South Africa. Nestle is a significant player in China’s infant formula market, estimated to be worth approximately 185 billion yuan (£20.5 billion) by 2025. China’s State Administration for Market Regulation last week urged Nestle to "fulfil its corporate responsibility", recall the relevant batches, and safeguard consumers.

Barclays analysts noted the pressure from Chinese authorities, suggesting the issue could be "pretty damaging" for the company, especially in China, where mothers are particularly sensitive to such concerns due to previous milk contamination cases involving various producers. Nestle shares, which had fallen by about 4 per cent since the recall began in January, rose by 0.6% on Wednesday.