Zurich, Jan 24, 2026, 22:15 (CET) — Market closed.
Nestlé shares started the week under pressure as French authorities launched investigations into two infant deaths linked to baby formula recalled earlier this month.
Nestlé shares (NESN) on the SIX Swiss Exchange ended Friday at 72.47 Swiss francs, slipping 0.98% for the session. (MarketWatch)
The key point now: this isn’t just about recall logistics anymore. It’s veering into legal and political arenas, where deadlines stretch out and predictions become far less certain.
Investors are also digesting news that Nestlé is pushing forward with a sale of a stake in its water business — a move that could either clarify its strategy or complicate matters further.
French authorities are investigating the deaths of two infants who consumed baby formula included in a precautionary recall, the health ministry said Friday. One of the infants had been fed Guigoz powdered milk, produced by Nestlé. The ministry emphasized: “To date, no causal link has been scientifically established,” and said further tests are ongoing. Nestlé told Reuters that “at this stage nothing indicates any link” between its products and the deaths. (Reuters)
Danone announced a recall of a “very limited number” of infant formula batches in select markets as the contamination scare expanded beyond Nestlé. Ireland’s Food Safety Authority flagged the risk of cereulide—a bacterial toxin linked to nausea, vomiting, and potentially fatal outcomes. Danone confirmed the affected products were made in Ireland and shipped internationally. (Reuters)
Nestlé shares have dropped roughly 3.7% in the last week, slipping in four of the previous five sessions by closing prices. (Investing)
Deal chatter is heating up again. Bloomberg reported Thursday that Nestlé is pressing forward with a sale of a stake in its water business, valued at around €5 billion. First-round bids are expected this month, with Rothschild on advisory duty and banks lining up €2–3 billion in buyout-style debt financing. Nestlé declined to comment, according to the report. (SWI swissinfo.ch)
Barclays held its rating on Nestlé steady but trimmed its price target to 80 Swiss francs from 90, according to a sector note reported by Investing.com. While the rating remained unchanged, the lower price target suggests a more cautious outlook over the next year. (Investing)
The downside is clear: should investigators confirm a connection between the deaths and contaminated formula, or if more markets pull products, the pressure could intensify through earnings season. That would boost the risk of a sharper blow to consumer confidence and increased expenses.
Swiss markets reopen Monday, with traders eyeing updates from French prosecutors and health officials. They’ll also seek clarity on the timing and interest level for bids on Nestlé’s water unit. Next major date: Nestlé’s full-year results for 2025, due Feb. 19. (Nestlé Global)
