Zurich, January 10, 2026, 21:25 CET — Market closed
- Nestle shares gained 1.4% by Friday’s close but still finished the week roughly 1.3% lower
- In the last two days, regulators from Ethiopia and the UK rolled out fresh updates on recalls
- Investors are zeroing in on the recall’s scope and Nestle’s full-year results due Feb. 19
Nestle (NESN.S) shares ended Friday 1.4% higher at 75.41 Swiss francs, narrowing their weekly drop to around 1.3% after hitting a low of 73.67 earlier in the week. Over the past year, the stock has fluctuated between 69.90 and 91.72. 1
The Swiss food group is grappling with new regulatory warnings as its infant-formula recall widens—a sensitive area where any quality issue hits hard. Ethiopia’s Food and Drug Authority announced Thursday that Nestlé pulled a batch of NAN Special Pro HA 0–12 (batch 51660742F3). The authority noted the product wasn’t registered but was still allowed for sale and must be returned. 2
On Friday, Britain’s Food Standards Agency revised its recall notice for multiple SMA infant and follow-on formula batches, adjusting some expiry dates. The agency warned that cereulide—a toxin from certain Bacillus cereus strains—is heat-stable, so boiling won’t reliably neutralize it, and it can trigger sudden nausea and vomiting. 3
Nestle announced this month it is recalling batches of SMA, BEBA, and NAN infant nutrition products due to potential cereulide contamination. So far, no illnesses have been reported. This follows a smaller recall back in December. The UK’s Food Standards Agency warned the toxin can trigger food-poisoning symptoms that “can be quick to develop and include vomiting and stomach cramps,” according to Jane Rawling, the agency’s head of incidents. Nestle said it identified the issue after testing arachidonic acid oil, a supplier ingredient flagged for quality concerns. The company is now shifting to alternative suppliers and boosting production. Infant formula hiccups can hit hard financially—Reckitt’s Mead Johnson faced U.S. lawsuits over similar problems, which it denies. 4
European stocks climbed to a record on Friday, driven by strong performances in miners and tech sectors as investors braced for upcoming earnings and macroeconomic reports. Nestle, typically seen as a defensive play, faced pressure this week due to concerns over product risk rather than the broader market rally. 5
Nestle’s full-year results drop on Feb. 19, with investors zeroing in on the recall’s scale and expenses, plus any ongoing supply disruptions. Traders will dig into guidance on volume growth and margins to gauge consumer response to pricing and promotions. 6
Looking ahead, global rate forecasts might pivot once more when the U.S. consumer price index for December drops Tuesday, Jan. 13. A shock in inflation data could jolt bond yields and currencies—key drivers for major exporters like Nestle. 7
The stock has repeatedly failed to push back above the 76–79 franc zone marked earlier this week, with the mid-74s holding as a short-term support. A decisive drop beneath that level would likely shift focus to the 70 franc mark and last year’s lows.
The risk remains that additional countries will expand the recall to more products or batches, or that new confirmed illness cases surface, turning what started as a precaution into a prolonged blow to a trust-dependent category. Supply disruptions could also rearrange shelf space, while lawsuits frequently loom in the infant nutrition arena.
At Monday’s Swiss open, the stock will hinge on new regulator updates about the affected batches and the general mood in global risk markets. The key date to watch is Feb. 19, when Nestle will report earnings and face questions about the recall.
