The UK, Ireland and the Netherlands joined a wave of European nations issuing recalls of Danone SA infant formula as the French company\u2019s exposure to the contamination crisis deepens.<\/p>\n
Some batches of Danone\u2019s Aptamil and Cow & Gate formula brands will be taken off shelves in the UK and Ireland, according to statements on Friday from food safety agencies there. Dutch authorities said some Nutrilon products will be pulled over concerns they are contaminated with the toxin cereulide.<\/p>\n
It comes after Austria, Germany, France and Switzerland announced recalls \u2014 adding up to hundreds of batches \u2014 on Thursday. AFP reported that recalls are under way in Romania, Hungary and Poland too.<\/p>\n
Shares of Danone fell as much as 4% in Paris on Friday. The stock was down 6.5% so far this year through Thursday\u2019s close.<\/p>\n
The recalls are the largest yet for Danone and could be a bigger financial hit than previously expected. Bloomberg Intelligence\u2019s Duncan Fox said in a note the estimated cost of recalls could \u201cfar exceed\u201d the \u20ac50 million originally projected.<\/p>\n
\u201cThe damage from Danone\u2019s UK infant formula recall can be more reputational than financial if consumers decide to change brands due to the news,\u201d he wrote.<\/p>\n
The growing global formula contamination crisis has also ensnared Nestl\u00e9 SA and Groupe Lactalis. More callbacks were expected after European food safety authorities recommended new lower toxin levels for European nations earlier this week.<\/p>\n
\u2018Precautionary\u2019<\/p>\n
Danone began recalling select batches of product in mid-January, starting in Singapore. The company later issued another larger recall following a change in toxin guidance from Irish food safety authorities.<\/p>\n
In a statement, Danone said it initiated \u201ca precautionary recall process of specific batches of products on January 23rd and we have implemented additional ingredient controls.\u201d It didn\u2019t specifically mention the latest recalls in the different European countries.<\/p>\n
The contamination originated from arachidonic acid oil, which is often added to infant formula. While no company has stated the source of the contamination, the supplier has since been identified as China\u2019s Cabio Biotech Wuhan Co.<\/p>\n
Nestl\u00e9 first discovered the potential contamination of formula batches with cereulide \u2014 which causes vomiting and diarrhea \u2014 and alerted trade groups in December.<\/p>\n
More than 60 countries are now recalling products and French authorities are still investigating a possible link between Nestle\u2019s Guigoz formula and the deaths of two babies. UK health authorities said Thursday that 36 babies may have become ill after consuming contaminated formula. No children have died in the UK.<\/p>\n
While baby formula is a tightly regulated industry, it has faced contamination scares, factory shutdowns and supply shocks in recent years \u2014 issues that led to the 2022 US shortage tied to Abbott Laboratories.<\/p>\n
US investigators plan to test certain dairy-based ingredients used in a wide variety of baby formulas for spores that can cause infant botulism, in the wake of the ByHeart recall last year that was connected to 51 infant hospitalizations.<\/p>\n
Photograph: Bottles of Danone SA Aptamil formula baby milk. Photo credit: Chris Ratcliffe\/Bloomberg<\/p>\n
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