Zurich, Jan 18, 2026, 22:03 CET — Market closed
- A Singapore regulator has ordered recalls for two more infant formula products, including one from Nestlé, amid worries about toxins.
- Nestlé shares dropped 1.7% on Friday, lingering near their 52-week low.
Nestle (NESN.S) faces fresh pressure this week after Singapore expanded its recall of infant formula products, pointing to the presence of a cereulide toxin. 1
Investors are grappling with tough timing. The recall saga has gone global, prompting markets to assess each new affected region as a test of whether the fallout will remain contained or escalate further.
All this unfolds right before Nestlé’s key earnings release next month, when investors will zero in on volumes, brand health, and potential financial hits tied to wider product recalls.
Singapore’s Food Agency said Saturday it detected cereulide toxin in two more infant formula products and ordered a recall as investigations go on. The affected items include Nestle NAN HA1 SupremePro 800g and a Dumex formula. The agency noted one reported case where someone consumed the contaminated product, experienced mild symptoms, and has since recovered. Cereulide toxin, produced by certain Bacillus cereus bacteria, can cause nausea and vomiting, the agency said. 1
Nestlé’s Singapore arm said it has “precautionarily stopped sale” of another batch of infant formula, coordinating with the Singapore Food Agency. Customers holding the affected batch code should contact its consumer services line for an exchange or refund. 2
Nestlé shares closed Friday at 75.24 Swiss francs, down 1.67%. The stock fluctuated between 75.24 and 76.22 francs during the session. Over the past 52 weeks, its price has ranged from 69.90 to 91.72 francs. 3
Swiss blue chips edged lower, pushing the SMI down 0.47%. 4
Nestlé is scrambling to manage reputational fallout. CEO Philipp Navratil issued an apology this week for the “worry and disruption” triggered by the recall, emphasizing that no illnesses linked to the affected batches have been reported. Barclays analysts flagged the episode as potentially “pretty damaging,” especially in China, where Nestlé commands a significant share of the infant formula market. 5
Monday’s session opens with eyes on possible regulatory actions in Asia and anticipation over whether Nestlé will clarify the extent of problems affecting its supply chain and product lineup.
The downside is obvious: with more countries banning products and consumer complaints mounting, the company will face steeper costs and a prolonged fight to win back trust in a market where parents abandon brands fast—and seldom come back.
Nestlé is set to release its full-year 2025 results on Feb. 19, the next major milestone. Investors will be watching closely for updates on the recall, especially its size and early effects on volumes and margins.
