Zurich, Jan 25, 2026, 19:58 CET — Market closed.
- On Friday, Nestle shares ended the session down 1.0%, closing at 72.47 Swiss francs.
- France is investigating two infant deaths linked to formula that had been subject to precautionary recalls.
- Traders await investigative findings due in the coming days, along with Nestle’s results on Feb. 19.
Nestle shares face pressure as Swiss markets open Monday, following French authorities launching investigations into the deaths of two infants linked to baby formula from precautionary recalls. 1
The Swiss food group’s shares ended the session down 0.98%, closing at 72.47 Swiss francs. This price point could expose the stock to fresh headline-driven swings once trading restarts. 2
This is critical now since infant nutrition hinges on trust, and the incident keeps Nestle under scrutiny while it struggles to contain an expanding formula recall. The longer the problem drags on, the more investors prepare for higher expenses, sales declines, or increased regulatory pressure.
This also comes before Nestle’s next big event: the full-year results set for Feb. 19. 3
French investigators are looking into whether the deaths are connected to the products, but the health ministry says no causal link has been found yet. The recalls involve potential contamination with cereulide, a toxin known to cause nausea and vomiting. 1
Nestle rejected any connection between its products and the deaths, stating in an email: “at this stage nothing indicates any link between these tragic events and the consumption of our products.” 1
On Friday, shares moved within a tight band from 71.96 to 73.07 francs but closed down, market data show. This limited fluctuation hints that investors haven’t sharply adjusted their risk outlook — at least not so far. 2
The problem isn’t limited to Nestle. Lactalis has pulled infant milk from shelves in several countries, while Danone has flagged concerns over a batch destined for Singapore. This points to a wider supply-chain issue in the sector. 1
Traders will be closely monitoring any updates from prosecutors and ministries in the week ahead, looking for clues on whether the recall perimeter will expand or hold steady. France’s farm ministry said it expects results from an initial judicial inquiry within the next 10 days. 1
Macro factors remain in play. On Monday, Switzerland’s central bank will release “important monetary policy data,” a report likely to influence the franc and shape rate expectations crucial to global giants such as Nestle. 4
The path is straightforward. Should investigators come up empty and the recall fade, the stock might shift back to focusing on rates and earnings forecasts. But if a connection is proven, legal risks and reputational harm could escalate quickly, prompting investors to factor in a prolonged drop in volumes.
Next on the docket: official findings from France expected within the 10-day timeframe, followed by Nestle’s February 19 earnings release. Management will need to address the financial fallout and confirm if the disruption is under control. 1
