Nestlé CEO Philipp Navratil has issued a video apology for the recent infant-formula recall, emphasizing that “food safety and trust come first.” The recall, which started in Europe in mid-December, has escalated globally, with 37 European countries, seven in the Americas, and nine in Asia, Oceania, and Africa affected. The recall is due to the detection of the Bacillus cereus bacteria in the Nan stage 1 formula, which can cause vomiting and abdominal cramps in babies. Navratil stated that there have been no confirmed cases of illness linked to the affected products, but the company acted quickly and transparently to initiate the recall.
The recall has raised questions about Nestlé’s credibility, with some critics arguing that the company’s slow response has damaged its reputation. Industry analysts are calculating the possible impact on Nestlé’s sales, with some estimating that the revenue loss could amount to around SFr1.2bn. Navratil sought to reassure consumers that the safety and quality of Nestlé’s products are paramount, and the company is taking steps to prevent similar incidents in the future.
The affected products, including SMA, SMA Alfamino, and Beba formulas, were found to contain a contaminated ingredient from an external supplier. The company has collaborated with health and food-safety authorities in each country to initiate the recall, but the slow-burn approach has attracted criticism. Nestlé has stated that the recalled formulas represent significantly less than 0.5% of annual group sales, and the financial impact is not expected to be significant. However, reputational damage could have implications for Nestlé’s wider infant-formula business.
Navratil’s apology and reassurance come as the company prepares to publish its 2025 financial results next month. Analysts expect the recall to be a major topic of discussion, with some predicting that the lost sales due to consumer concern over brand safety could weigh on sales and associated profit this year. Despite this, Navratil remains committed to upholding the highest quality and safety standards, emphasizing that “food safety and trust come first” is at the heart of everything Nestlé does.