Britain, Ireland and the Netherlands joined a wave of European countries issuing recalls of Danone SA infant formula as exposure to the French company’s contamination crisis deepens.
Some batches of Danone’s Optimal and Cow and Get formula brands will be pulled from shelves in the UK and Ireland, according to statements from food safety agencies on Friday. Dutch officials said some Nutrilon products will be recalled over concerns they are contaminated with the toxin cerilide.
This comes after Austria, Germany, France and Switzerland announced on Thursday that they would increase hundreds of batches. AFP reported that Romania, Hungary and Poland also remember.
Danone shares fell as much as 4% in Paris on Friday. The stock was down 6.5 percent so far this year as of Thursday’s close.
The recalls are the biggest yet for Danone and could have a bigger financial impact than previously expected. Bloomberg Intelligence’s Duncan Fox said in a note that the estimated cost of the recall could be much higher than the $50 million originally expected.
“If consumers decide to switch brands because of the news, the damage from Danone’s UK infant formula recall could be more reputational than financial,” he wrote.
The growing global formula contamination crisis has also sparked Nestlé SA and Groupe Lactalis. More callbacks were expected after European food safety authorities recommended new lower levels for European countries earlier this week.
‘Caution’
Danone began recalling select batches of products beginning in mid-January in Singapore. The company later issued another major recall following a change in toxicity guidance by Irish food safety authorities.
In a statement, Danone said it “initiated a precautionary recall of certain batches of the product on January 23 and we have implemented additional ingredient controls.” He did not specifically mention recent recalls in various European countries.
The contamination started with arachidonic acid oil, which is often added to baby formula. Although neither company has specified the source of the contamination, the supplier has since been identified as China’s Kebio Biotech Wuhan Co.
Nestlé first discovered possible contamination of formula batches with cerelide – which causes vomiting and diarrhea – and warned trade groups in December.
More than 60 countries are now recalling the product and French authorities are still investigating possible links between Nestlé’s Gygoz formula and the deaths of two babies. British health officials said Thursday that 36 children have become ill after consuming contaminated formula. No children have died in the UK.
Although baby formula is a tightly regulated industry, it has faced contamination fears, factory closings and supply shocks in recent years — issues that Abbott Laboratories has linked to a 2022 U.S. shortage.
U.S. investigators plan to test some dairy-based ingredients used in a variety of baby formulas for spores that could cause infant botulism, which were linked to 51 children’s hospitals, in the wake of the ByHart recall last year.
Photo: Danone SA Optimal Formula Baby Milk Bottles. Photo credit: Chris Rutcliffe/Bloomberg
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