ZURICH, Jan 31, 2026, 21:16 CET — The market has closed.
France cut the safety limit for cereulide — a toxin that triggers nausea and vomiting — in infant formula on Saturday, a move likely to prompt more product recalls. Nestle shares (NESN.S) on the SIX Swiss Exchange last closed at 73.43 Swiss francs Friday, down 0.07%, after fluctuating between 73.15 and 74.06 francs on 3.54 million shares traded. The farm ministry dropped the threshold to 0.014 micrograms per kilogram of body mass from 0.03, citing a Jan. 28 EU meeting ahead of new European Food Safety Authority guidance expected Monday, Feb. 2. The recalls stem from ingredients sourced from a Chinese factory supplying several producers, including Lactalis. French authorities are investigating two infant deaths, while Foodwatch has filed a criminal complaint in Paris. (Reuters)
Trading is paused until Monday, but the weekend’s developments have revived a familiar headache. Baby formula shortages don’t stay contained—tweaks to safety standards can trigger everything from product recalls to lab investigations and legal fallout.
Foodwatch said the complaint was lodged on behalf of eight families, whose babies reportedly became ill after consuming contaminated infant formula. Symptoms included repeated vomiting, diarrhoea, fever, and abdominal pain. Nestle responded by saying it had acted responsibly and had not received any medical reports confirming a connection. The report added that a baby in Belgium’s Flanders region has since recovered. (Reuters)
The issue has expanded beyond a single supply chain. Danone has recalled at least three batches of Aptamil in Germany and told wholesaler Alliance Healthcare to pull products made from May to August 2025, according to a letter seen by Shop Apotheke. (Reuters)
Nestle has sought to downplay the financial fallout. In an online product advisory, the company said the recalled batches account for well under 0.5% of annual group sales, adding that the impact on results should be minimal. Chief Executive Philipp Navratil offered a “sincere apology for the worry and disruption” caused. (Nestlé Global)
Nestle India delivered a standout performance on Friday, posting a 46% leap in quarterly profit alongside revenue growth close to 19%. Chairman and MD Manish Tiwary described the quarter as one of “record sales” and the “strongest volume growth in nearly five years.” (Reuters)
The Swiss Market Index closed Friday with a 0.31% gain as the month wrapped up. (Investing)
Monday’s open for Nestle hinges on what comes next: will France demand further withdrawals? And will other regulators follow with stricter limits? Traders are also on alert for fresh details from investigators and how fast the supply chain can handle another testing phase.
Nestle will unveil its full-year 2025 results on Feb. 19 in Vevey. Investors will be keen to hear updates on recall expenses and the fallout for its brands, alongside the usual details on pricing, volumes, and guidance. (Nestlé Global)
The downside is straightforward. If additional countries tighten thresholds or yank more products, the costs could climb—through write-offs and lost shelf space—even when the recall is minor compared to overall group sales.
Trading kicks off Monday, Feb. 2, amid the EFSA update and new stricter rules from France. Then all eyes shift to Feb. 19, a date investors have marked on their calendars.
