Zurich, Feb 1, 2026, 20:56 CET — Trading has ended.
- On Friday, Nestle shares ended at 73.43 Swiss francs, slipping 0.07%.
- France has lowered its safety threshold for a vomiting toxin tied to infant formula recalls, increasing the likelihood of more product withdrawals.
- Investors eye potential regulator moves this week alongside Nestle’s full-year results due Feb. 19.
Shares of Nestle on the SIX Swiss Exchange enter the new week under pressure as regulators clamp down on a toxin linked to recent baby-formula recalls, following a flat finish on Friday.
Why it matters now: what began as a recall is evolving. France’s stricter safety standards may trigger more product pulls, prolong testing, and ramp up legal and reputational risks—just as investors gear up for Nestle’s annual earnings.
Nestle ended Friday at 73.43 Swiss francs, slipping 0.07% after fluctuating between 73.15 and 74.06 during the session. The previous day, the stock had climbed 1.3%. (Investing)
Price moves have been minimal. The headlines, though, have packed a punch.
France has cut its safety limit for cereulide — the toxin linked to nausea and vomiting — from 0.03 to 0.014 micrograms per kilogram of body weight, the agriculture ministry announced. The stricter threshold, settled after an EU meeting on Jan. 28 and matching new guidance from the European Food Safety Authority due Monday, is expected to prompt a fresh wave of product withdrawals soon. Authorities said cereulide was found in ingredients from a Chinese factory supplying formula companies including Danone and Lactalis. Meanwhile, Foodwatch has lodged a criminal complaint in Paris, and French investigators are probing two infant deaths. (Reuters)
In the UK, the Food Standards Agency confirmed to Sky News that it found the toxin in certain batches of recalled SMA formula. It’s collaborating with the UK Health Security Agency to probe the issue. “We are urgently tracing all products that may have used ingredients from this supplier to make sure any affected products are removed from sale,” Jodie Wild said. (Sky News)
Nestle has moved quickly to limit its financial exposure. The Vevey-based company reported detecting very low levels of cereulide in late November at a Dutch factory, notifying both Dutch authorities and the European Commission on Dec. 10. It has since halted sourcing the contaminated ARA oil from that supplier, resumed production at most infant-formula plants, and sees no major impact on its results. The recalled batches make up well under 0.5% of the group’s annual sales. (Nestlé Global)
The downside scenario is straightforward. Should the lower French limit trigger a broader product pullback, or if regulators expand their investigations, recall expenses and operational disruptions could surge sharply.
Sentiment hinges on this as well. Infant nutrition is fundamentally about trust; the market tends to view a safety scare as a lasting hit to reputation, not just a one-time issue.
Traders will be keeping an eye on whether France’s action sparks further withdrawals and if UK and European regulators widen their testing and public alerts. The EU’s updated food-safety guidelines, set for release Monday, add another immediate milestone.
Nestle plans to release its full-year results on Feb. 19. Investors will be watching closely for details on recall expenses, any new provisions, and whether the company adjusts its outlook. (Nestlé Global)
