Briefly

According to Reuters, French company Vitagermine expanded a recall of infant formulas, triggering a chain reaction — Nestlé, Danone and Lactalis are withdrawing large batches over the risk of contamination by cereulide (a toxin produced by Bacillus cereus bacteria). Analysts at Barclays and Bernstein estimate potential losses in the hundreds of millions — up to 1 billion Swiss francs for Nestlé in a worst-case scenario.

What was found

The source of contamination is linked to a Chinese supplier of arachidonic acid (ARA) — a critical ingredient in premium formulas. Cereulide withstands heating and can cause vomiting and diarrhea within 30 minutes to 3 hours after consumption; symptoms resemble "stomach flu."

"Nestlé continues to monitor developments and is cooperating with full transparency, providing all necessary information."

— Nestlé press office

The economic toll

Analysts assess the impact differently: Danone could lose around €100m, while Nestlé could face about 1 billion Swiss francs in a worst-case scenario (sources: Barclays, Bernstein). Infant formulas account for roughly 21% of Danone's revenue in that category and approximately 5% for Nestlé. Share price falls have already been recorded: Danone has dropped to levels not seen since January 2025, and Nestlé is down nearly 10% since the start of January.

Authorities' stance and reported illnesses

French investigators are examining a possible link to the deaths of two infants, but France's Ministry of Health says a causal connection has not yet been established (source: Euronews Health). In Flanders, a representative of the health department, Joris Munens, reported a case in which tests detected cereulide contamination in a Nestlé infant product.

"Tests confirmed that she became ill due to cereulide contamination from a Nestlé dairy product."

— Joris Munens, Department of Health (Flanders)

Risks for Ukraine

Nestlé reported on 6 January 2026 a voluntary recall of certain imported NAN and Nestogen formulas in Ukraine as a precaution; the company also stated that some of the products in question, according to them, were not imported. Member of Parliament Danylo Hetmantsev expressed doubts about the arrival of some batches into retail networks and suggested possible smuggling — a factor that makes the local market vulnerable.

Practical advice for parents

- Check batch numbers and expiration dates on the manufacturers' official pages or in messages from the State Service for Food Safety and Consumer Protection, and follow recall instructions.
- If a child had symptoms (vomiting, diarrhea) after consuming a formula — consult a pediatrician and keep the packaging for testing.
- Avoid buying products of unknown origin or "from private sellers" — smuggled goods may be cheaper, but they lack certification and safety guarantees.

What next

The key question is whether companies and regulators can inspect the entire supply chain and close off risks to consumers. This is a test for the food safety control system and for retail chains, which must prevent unsuitable products from reaching the shelves of Ukrainian stores.

Summary: the issue is not only about losses in the billions, but about parents' trust and institutions' ability to guarantee the safety of the most vulnerable. While business and regulators tally the losses, the main thing for families is to check sources, respond to symptoms, and consult official channels for information.