Nestle’s new baby formula woes challenge CEO’s revamp plan

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Nestle’s Chief Executive Officer (CEO) Philipp Navratil has had a tough start to 2026. 

Only months after taking charge of Nestle SA, the Swiss foodmaker’s chief executive officer is battling

a deepening infant formula contamination crisis

that has spread from a handful of countries in Europe to more than 50 worldwide in less than a week. 

Scores of products across brands like BEBA, SMA and Alfamino are being recalled and multiple production sites have been affected by the discovery that cereulide, a toxin that can cause nausea and vomiting, was detected in an ingredient from one of its oil suppliers.

Singapore has also been affected by the discovery, and the sale of five batches of Nestle’s infant and follow-on formulas was

ordered to stop

as a precaution.

Nestle initiated the recall, no babies have been reported ill and the food maker said the financial impact will be limited, yet damage has been done. 

Shares of Nestle are down more than 4 per cent since the recall began, and analysts at Jefferies are forecasting a sales hit of as much as 1.2 billion Swiss francs (S$1.93 billion). The drip feed of disclosures about new markets affected this week has raised questions about trust in a company with a checkered history when it comes to the sale of infant formula.

Mr Navratil, who came in 2025 pledging openness after his predecessor was

ousted in a scandal

involving an office romance, is now facing his first major ope...

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