Nestle's chief executive has issued a public video apology following a massive global recall of infant nutrition products spanning dozens of countries. The Swiss consumer goods giant is scrambling to contain the fallout from potential contamination, a crisis that threatens its strong market position, particularly in China.
Scope and Cause of the Global Recall
The precautionary recall, which began in December, now affects at least 53 countries across Europe, the Americas, Asia, and Africa. Health warnings have been issued for several popular infant formula brands, including SMA, BEBA, NAN, and Alfamino.
The products are being pulled from shelves due to possible contamination with cereulide, a toxin that can cause nausea and vomiting. Nestle traced the issue to a quality concern with an ingredient known as arachidonic acid oil (ARA) sourced from a leading supplier at one of its factories in the Netherlands.
In a video published late on Tuesday 13th January 2026, CEO Philipp Navratil apologised for the "worry and disruption" caused to parents and caregivers. He confirmed that, to date, there have been no confirmed cases of illness linked to the recalled batches.
Supply Chain Impact and Market Repercussions
A Nestle spokesperson confirmed the company has suspended sourcing ARA oil from the implicated supplier and has restarted production using oil from an alternative source. The supplier was not named publicly.
The recall underscores the fragility of global supply chains, expanding rapidly from its origin in Europe to major markets like Brazil, China, and South Africa. The situation is particularly sensitive in China, where Nestle holds a significant share of an infant formula market estimated to be worth around 185 billion yuan (£20.5 billion) by 2025.
China's State Administration for Market Regulation has publicly urged Nestle to fulfil its corporate responsibility. Analysts at Barclays noted the pressure from Chinese authorities, suggesting the issue could be "pretty damaging" for the company, given heightened consumer sensitivity stemming from historical milk contamination scandals.
Corporate Response and Financial Fallout
For CEO Philipp Navratil, who was appointed recently to revitalise the multinational, the crisis represents a major early test. The company's shares had fallen approximately 4% since the recall began in January, though they saw a slight rise of 0.6% on Wednesday 14th January.
Other companies in the supply chain have been drawn into the controversy. While Amsterdam-listed ARA producer dsm-firmenich stated none of its products were affected, shares in Chinese company Cabio Biotech plunged almost 12% on 8th January. Cabio, which had highlighted its relationship with major clients like Nestle in its 2024 annual report, did not respond to requests for comment.
Nestle's immediate focus remains on managing the recall and restoring consumer confidence in its vital infant nutrition division as the investigation continues.
