Nestlé baby formula recall tests new CEO's revamp plan

Nestlé has recalled infant formula after tests detected the toxin cereulide in an ingredient, and the company says no babies have been reported ill and affected factories have been cleaned and restarted.

Nestlé is conducting a global recall of several infant formula products after tests detected the toxin cereulide in an ingredient known as arachidonic acid oil supplied to its production chain. The discovery led the company to identify affected batches, notify local authorities and remove products across multiple brands and production sites. Nestlé says no babies have been reported ill and that affected factories have been thoroughly cleaned and operations restarted under reinforced quality controls. Philipp Navratil, the company's new chief executive, is coordinating the response while also pursuing a broader plan to cut costs and revive performance. Key facts: - Company testing traced the contamination to arachidonic acid oil and prompted recalls that expanded rapidly across many markets, reportedly reaching more than 50 countries. - Nestlé reports no infants have been reported ill, and affected production sites have been cleaned and restarted with strengthened quality management. - The recall has reduced investor confidence and prompted analyst estimates of a material sales impact, putting additional pressure on the CEO as he manages companywide changes. Summary: The recall has created reputational and financial pressure while Nestlé focuses on removing affected products and restoring operations. Company officials say production sites have been cleaned and resumed activity and that no infant illnesses have been reported. The situation has prompted market and stakeholder scrutiny and raised questions about trust and transparency. Undetermined at this time.