Global Recall: Nestle's Woes Deepen Amid Infant Formula Scare

Nestle is recalling certain infant nutrition products in Europe, the Americas, and Asia, including China and Brazil, due to possible cereulide contamination. The recall, a preventative measure, has been issued in 37 countries, putting pressure on CEO Philipp Navratil as Nestle's shares decline.

Nestle has expanded its recall of certain infant nutrition products from Europe to regions including the Americas and Asia, notably China and Brazil, due to potential contamination. The products in question are linked with possible ceruelide toxin presence, which can result in symptoms like nausea and vomiting.

Health warnings have surfaced in at least 37 countries such as those across Europe, Australia, Brazil, China, and Mexico. The recall intensifies scrutiny on Nestle and its CEO Philipp Navratil, who is striving to boost growth following management changes, with the company's shares reflecting a 4.5% reduction this week. Brazil's health ministry confirmed the recall was precautionary after detecting the toxin in products from the Netherlands.

Further details reveal the affected batches in Australia were produced in Switzerland, while those in China were imported from Europe. Austria's health ministry noted that over 800 products from more than 10 factories are involved, marking a significant event in Nestle's history. As part of a quality check, Nestle is testing arachidonic acid oil used in these products and is seeking alternate suppliers to sustain production.

(With inputs from agencies.)