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Three of the world’s largest dairy and infant nutrition companies, Nestlé, Danone and Lactalis, are facing heightened scrutiny after issuing recalls or halting distribution of infant formula products over concerns related to potential cereulide contamination.

The situation first emerged in earlier this month, when Nestlé initiated a wide-ranging recall of multiple infant formula brands, including SMA and NAN, across more than 60 countries.

The Swiss food group cited the possible presence of cereulide, a heat-stable toxin produced by Bacillus cereus, linked to a specific ingredient used in the affected products.

While no confirmed illnesses were reported at the time, regulators such as the UK’s Food Standards Agency (FSA) advised caregivers not to feed infants with the recalled formulas as a precaution.

Following the Nestlé recall, French dairy group Lactalis expanded the scope of the issue by voluntarily recalling six batches of its Picot brand infant milk formula.

The affected products were distributed across at least 18 countries spanning Europe, Asia, Latin America, Africa and Oceania. Lactalis said cereulide had been detected in an ingredient supplied to the company, but emphasised that other production lots were unaffected and safe for consumption.

In parallel, authorities in Singapore requested that Danone block the distribution of a batch of its Dumex Dulac 1 infant formula produced in Thailand. The move was described as a precautionary measure linked to the broader contamination concerns.

Danone stated that internal testing did not identify any irregularities in the product, but the announcement nonetheless weighed on investor sentiment, with the company’s shares falling sharply following the alerts.

Collectively, the actions taken by the three companies illustrate how safety concerns tied to specialised ingredients can rapidly escalate into global regulatory, reputational and commercial challenges.

Cereulide is particularly difficult to manage because it is resistant to heat and may not be eliminated during standard processing, placing greater emphasis on upstream ingredient sourcing and testing.

For dairy producers, ingredient suppliers and manufacturers, the recalls are prompting renewed focus on risk management, traceability and quality assurance systems within infant formula supply chains.

Attention is likely to intensify around testing protocols for high-risk components – such as lipid-based ingredients, including ARA oil – as well as the speed and transparency of communication between manufacturers and regulators.