Zurich, Jan 18, 2026, 22:03 CET — Market closed
- A Singapore regulator has ordered recalls of two additional infant formula products, one of which is a Nestlé brand, due to concerns over toxins.
- Nestlé shares ended Friday down 1.7%, hovering close to the bottom of their 52-week range.
Nestle (NESN.S) starts the week under renewed pressure as Singapore extends a recall of its infant formula products, citing concerns over a cereulide toxin. (Default)
Investors face tricky timing. The recall saga has spread internationally, with the market sizing up each new region as a gauge of whether the fallout will stay contained or spiral out.
This comes just ahead of Nestlé’s crucial earnings report next month, where investors are expected to grill management on volumes, brand impact, and any financial fallout from broader product recalls.
Singapore’s Food Agency announced on Saturday that it found cereulide toxin in two more infant formula products and has ordered a recall as investigations continue. Among the products named was Nestle NAN HA1 SupremePro 800g, along with a Dumex formula. The agency reported one case involving a person who consumed an affected product and experienced mild symptoms but has since recovered. Cereulide toxin is produced by certain Bacillus cereus bacteria and can trigger nausea and vomiting, according to the agency. (Default)
Nestlé’s Singapore branch announced it has “precautionarily stopped sale” of another batch of infant formula, working alongside the Singapore Food Agency. Consumers with the affected batch code are urged to reach out to its consumer services line for an exchange or refund. (Nestlé)
Nestlé shares ended Friday at 75.24 Swiss francs, slipping 1.67%. The stock traded within a band of 75.24 to 76.22 francs throughout the session. Over the last 52 weeks, its price has fluctuated between 69.90 and 91.72 francs. (Investing)
The broader Swiss blue chips slipped, with the SMI closing down 0.47%. (SIX Structured Products)
Nestlé is working to contain reputational damage. CEO Philipp Navratil apologised this week for the “worry and disruption” caused by the recall, though the company said no illnesses have been confirmed from the affected batches. Barclays analysts warned the situation could be “pretty damaging,” particularly in China, where Nestlé holds a major position in infant formula. (Reuters)
Trading kicks off Monday with investors focused on potential regulatory moves in Asia and whether Nestlé will offer clearer insight into the scope of issues across its supply chain and product range.
The downside is clear: as more countries ban products and consumer complaints rise, the company will face higher costs and a longer battle to regain trust in a category where parents quickly jump ship and rarely return.
Nestlé’s full-year results for 2025 drop on Feb. 19, marking the next key event. Investors will zero in on any fresh details about the recall’s scale and initial impacts on volumes and margins.
