Danone and Lactalis embroiled in global infant formula crisis

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Danone and Lactalis have seen infant formula products pulled over toxin contamination fears. Image: iStock

Two dairy majors have pulled infant formula products as cereulide fears spread beyond Nestlé

Summary

  • Danone and Lactalis block and recall formula batches amid cereulide concerns.
  • Toxin traced to ARA oil after Nestlé’s earlier 60‑country recall.
  • Industry expected to tighten testing as ARA oil’s ‘low‑risk’ status comes under review.

Danone and Lactalis have come under pressure amid concerns that a contaminated ingredient may have tainted some of their infant formula products.

The two CPG majors have blocked batches over fears that cereulide, a toxin that spurred a global recall by Nestlé, may be present.

In Singapore, Danone blocked a batch of Dumex Dulac formula from being rolled out that market at the request of local food safety authorities, saying it had not detected cereulide in any of its products.

In contrast, Lactalis recalled six lots of Picot infant formula in countries including France, China, Australia and Mexico, citing the presence of cereulide in an ingredient supplied by one of its suppliers.

Toxin traced to ARA oil

Cereulide is a toxin that can cause vomiting and nausea if ingested. It was detected in ARA oil, an ingredient commonly used in infant formula.

The toxin was first detected by Nestlé in late 2025 during routine product checks, prompting a major recall that ultimately spanned nearly 60 countries worldwide.

The Swiss major’s CEO Philipp Navratil stepped up to calm consumers and investors after the company was criticized over opaque and slow communication.

He said that all recalls had been issued and iterated that no illnesses had been reported.

But consumers from countries including the UK and Brazil have since come forward with reports of sickness. These cases are being investigated and have not been officially linked to Nestlé’s products.

‘Low‑risk’ classification under scrutiny

An industry insider told us the sector is likely to test ARA oil more frequently in the aftermath of Nestlé’s recall.

The ingredient, which aids infant brain development, is classed as ‘low-risk’ in the HACCP system, meaning it only receives routine checks.

But ARA oil can be upgraded to ‘high-risk’ to intensify the frequency and level of scrutiny over the ingredient, particularly given its widespread use in infant formula manufacture.