02/19/2026, 09:1402/19/2026, 09:14
The recall of poisoned baby food will slow Nestlé’s growth in 2026. However, CEO Philipp Navratil does not believe there will be long-term damage to the company, as he said on a conference call with journalists on Thursday.
Nestlé CEO Philipp Navratil.Image: William Gammuto
In 2025, the world’s largest food manufacturer incurred costs totaling 185 million francs for product returns and inventory write-offs in connection with the recall, it was said. In the current year, the effects are also likely to slow the group’s organic growth by 20 basis points.
Additional effects due to possible reluctance among consumers are still unclear and difficult to quantify, said CFO Anna Manz. The effects could drive organic growth to the lower end of the range of around 3 to 4 percent targeted for 2026, it was said.
Surprised by late recalls from competitors
Nestlé does not expect permanent structural damage or impairment of other brands, although some trust needs to be rebuilt, said CEO Navratil. The group reacted quickly and informed the authorities and the industry immediately.
Nestlé has now completed the recall and resumed production at all factories.Image: KEYSTONE
Navratil expressed surprise that other baby milk powder producers who were also affected, such as French competitor Danone, had waited to issue recalls. However, he emphasized that he could not speak for the competitors and did not know why they reacted later.
Works run around the clock
Nestlé has now completed the recall and resumed production at all factories. The plants are currently running around the clock to avoid delivery bottlenecks, Navratil said.
At the end of December, Nestlé discovered the bacterial toxin cereulide in an oil ingredient purchased from a Chinese manufacturer and at the end of 2025 launched the largest recall campaign in its history in a total of around 60 countries.
The group now uses alternative suppliers and carries out comprehensive tests before, during and after production. Cereulide has no place in infant formula and Nestlé works with stricter standards than the European reference values, it was said. (sda/awp)