China Calls on Nestlé to Expedite Baby Formula Recall Process

Chinese authorities are urging Nestlé SA to expedite the recall of baby formula products in mainland China due to potential contamination concerns.

The State Administration for Market Regulation stated on Thursday that Nestlé has a significant corporate responsibility to safeguard the rights and interests of consumers in China, the world’s largest market for infant formula.

This call to action follows Nestlé’s announcement on Wednesday, which expanded a recall of certain baby formula products beyond Europe to Asia and the Americas. The recall was initiated over concerns that these products may be contaminated with cereulide, a toxin linked to foodborne illnesses, including vomiting.

Read more: Nestle Infant Formula Recall Widens to Africa, the Americas and Asia

The voluntary recall pertains to batches of infant nutrition products, including the BEBA and Alfamino brands. This action began in Europe earlier this week after cereulide was detected in an ingredient sourced from one of Nestlé’s oil suppliers. Notably, the company has reported no illnesses related to the affected products on its website.

Nestlé has informed local authorities in nearly 50 countries, leaving it to these bodies to announce public recalls. So far, countries that have issued public recalls include Germany, Australia, Brazil, and China.

In a separate statement on its China website, Nestlé announced the voluntary recall of 41 batches of baby formula products imported from Europe and sold through online channels in mainland China. While no reports of discomfort have been received, the company has advised parents against feeding their children these products.

Additionally, Nestlé has recalled affected products in Hong Kong, where the Centre for Food Safety is conducting an investigation.

Although Nestlé has not yet calculated the total cost of the global recall, it does not anticipate a significant financial impact. The affected batches account for less than 0.5% of annual group sales, according to the company. However, some analysts, including those from Jefferies, suggest that the worst-case scenario could see total sales risk reach as high as 1.3% of group sales, equating to approximately 1.2 billion Swiss francs ($1.5 billion).

The potential reputational risk for Nestlé may pose a more significant challenge. Jean-Philippe Bertschy, an analyst at Vontobel, emphasized, “Infant nutrition is a strategically important, high-trust category in which Nestlé holds more than 20% of the global market. Reputational risk is our main concern rather than the absolute financial impact.”

Consumer reactions to recalls can vary significantly by market. David Hayes, an equity analyst at Jefferies, noted that the 2013 false alarm contamination recall of Danone’s Dumex brand in China nearly resulted in a loss of about €800 million in brand sales. In contrast, Abbott’s Similac brand recalls in 2010 and 2022 in the U.S. saw market share recovery within about a year.

This large-scale recall presents a further challenge for Nestlé’s new CEO, Philipp Navratil, who is already working to improve the company’s performance amid recent scandals. Appointed after the dismissal of Laurent Freixe for failing to disclose a romantic relationship with a subordinate, Navratil is also in the process of cutting thousands of jobs while striving to enhance volumes and free cash flow.

Since the recall news broke, Nestlé’s shares have declined by approximately 6%, despite a rise of just over 5% in 2025.

Photograph: A bottle of milk prepared from infant formula. Photo credit: Giulia Marchi/Bloomberg

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Copyright 2026 Bloomberg.

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Chinese authorities are urging Nestlé SA to expedite the recall of baby formula products in mainland China due to potential contamination concerns.

The State Administration for Market Regulation stated on Thursday that Nestlé has a significant corporate responsibility to safeguard the rights and interests of consumers in China, the world’s largest market for infant formula.

This call to action follows Nestlé’s announcement on Wednesday, which expanded a recall of certain baby formula products beyond Europe to Asia and the Americas. The recall was initiated over concerns that these products may be contaminated with cereulide, a toxin linked to foodborne illnesses, including vomiting.

Read more: Nestle Infant Formula Recall Widens to Africa, the Americas and Asia

The voluntary recall pertains to batches of infant nutrition products, including the BEBA and Alfamino brands. This action began in Europe earlier this week after cereulide was detected in an ingredient sourced from one of Nestlé’s oil suppliers. Notably, the company has reported no illnesses related to the affected products on its website.

Nestlé has informed local authorities in nearly 50 countries, leaving it to these bodies to announce public recalls. So far, countries that have issued public recalls include Germany, Australia, Brazil, and China.

In a separate statement on its China website, Nestlé announced the voluntary recall of 41 batches of baby formula products imported from Europe and sold through online channels in mainland China. While no reports of discomfort have been received, the company has advised parents against feeding their children these products.

Additionally, Nestlé has recalled affected products in Hong Kong, where the Centre for Food Safety is conducting an investigation.

Although Nestlé has not yet calculated the total cost of the global recall, it does not anticipate a significant financial impact. The affected batches account for less than 0.5% of annual group sales, according to the company. However, some analysts, including those from Jefferies, suggest that the worst-case scenario could see total sales risk reach as high as 1.3% of group sales, equating to approximately 1.2 billion Swiss francs ($1.5 billion).

The potential reputational risk for Nestlé may pose a more significant challenge. Jean-Philippe Bertschy, an analyst at Vontobel, emphasized, “Infant nutrition is a strategically important, high-trust category in which Nestlé holds more than 20% of the global market. Reputational risk is our main concern rather than the absolute financial impact.”

Consumer reactions to recalls can vary significantly by market. David Hayes, an equity analyst at Jefferies, noted that the 2013 false alarm contamination recall of Danone’s Dumex brand in China nearly resulted in a loss of about €800 million in brand sales. In contrast, Abbott’s Similac brand recalls in 2010 and 2022 in the U.S. saw market share recovery within about a year.

This large-scale recall presents a further challenge for Nestlé’s new CEO, Philipp Navratil, who is already working to improve the company’s performance amid recent scandals. Appointed after the dismissal of Laurent Freixe for failing to disclose a romantic relationship with a subordinate, Navratil is also in the process of cutting thousands of jobs while striving to enhance volumes and free cash flow.

Since the recall news broke, Nestlé’s shares have declined by approximately 6%, despite a rise of just over 5% in 2025.

Photograph: A bottle of milk prepared from infant formula. Photo credit: Giulia Marchi/Bloomberg

Related:

Copyright 2026 Bloomberg.

Topics
China