Nestle widens infant formula recall after EU requests new toxin analysis

By Sybille de La Hamaide and Alexander Marrow

PARIS, Feb 4 (Reuters) – Nestle widened an infant formula recall on Wednesday to include batches of Guigoz in France and SMA in the UK after the European Union introduced new methods for analysing levels of the cereulide toxin.

The recall came despite analysts’ expectations that no further withdrawals would be needed from the Swiss group.

Cereulide, which can cause nausea and vomiting, has been detected in ingredients from a supplier in China for many infant formula makers, including Nestle, Danone and Lactalis. The findings have triggered recalls in dozens of countries and raised concerns among parents.

“In light of the evolved EU method of analysis, and continuing to apply our strict internal standards for cereulide in infant formula, we are adding a few batches in some European countries that were already part of the initial recall,” Nestle said in a statement. 

Nestle did not say how many countries were affected by the latest recall, but said no additional countries were included. The initial recall affected about 60 countries mostly across Europe, Asia and the Americas.

NEW EU ANALYSIS METHOD

The European Commission last week asked member states to analyse liquid formula for cereulide levels in addition to powder formulas, according to a letter seen by Reuters. 

Liquid formula can show higher levels of cereulide than when it is in powdered form and Nestle’s voluntary recall suggests it has detected cereulide levels above its own limit.  

Nestle said its strict internal limit of 0.2 ng/g for cereulide in infant formula was more stringent than the new European Food Standards Agency guidance of 0.43 ng/g. 

Britain’s Food Standards Agency on Tuesday said another batch of Nestle’s SMA Advanced First Infant Milk was being recalled. 

Nestle first detected low cereulide levels in product samples in late November, but only confirmed that an oil blend containing arachidonic acid oil (ARA) was the cause of contamination on December 24.

France’s agriculture ministry has identified the source of the contaminated oil as China’s Cabio Biotech. The Chinese company, whose shares have fallen around 18% this year, has not responded to Reuters requests for comment. 

France reduced its safety limit for cereulide on Saturday, in line with recommendations from EFSA, which introduced its own threshold on Monday. 

Analysts at Barclays and Jefferies had said on Monday they did not expect Nestle and Danone to face additional recalls as a result of the updated limit.

Shares in both companies have recovered from multi-month lows in late January as the reach of contaminated baby formulas widened. Nestle’s shares were 1.6% higher by 1344 GMT. Danone’s shares had gained 1.3%.  

   French investigators are examining a possible link between two infant deaths and recalled Guigoz formula, though authorities and the company say there’s no evidence so far. Results are expected in coming days.

(Reporting by Sybille de La Hamaide, Gus Trompiz and Alexander Marrow; Editing by Benoit Van Overstraeten and Louise Heavens)