Nestle widens infant formula recall after France lowers toxin level

Nestle widened an infant formula recall to include a batch of Guigoz after France lowered the maximum threshold for the cereulide toxin, contradicting analyst 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 factory in China supplying many infant formula makers, including Nestle, Danone and Lactalis. The findings have triggered recalls in dozens of countries and raised concerns among parents.

"As methods for analyzing cereulide have evolved, we are voluntarily recalling a batch of Guigoz infant formula in addition to the batches already recalled," Nestle said on its recall alert.

ANALYSTS HAD SAID FURTHER RECALLS WERE UNLIKELY

France reduced its safety limit for cereulide on Saturday, aiming to strengthen protections after recalls widened to include other companies such as Vitagermine. The new threshold followed a meeting with the EU’s food safety authority EFSA, which issued similar advice 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.

Nestle had already recalled some Guigoz batches, among other brands, in France in January and December.

French investigators are looking into whether there is a link between the death of two infants and recalled Guigoz infant formula products, local prosecutors said.

The French health ministry and the company said there was no evidence of such a connection at this stage. Results are expected in the coming days.