The UK, Ireland and the Netherlands joined a wave of European nations issuing recalls of Danone SA infant formula as the French company’s exposure to the contamination crisis deepens.
Some batches of Danone’s Aptamil and Cow & Gate formula brands will be taken off shelves in the UK and Ireland, according to statements on Friday from food s
afety agencies there. Dutch authorities said some Nutrilon products will be pulled over concerns they are contaminated with the toxin cereulide.
It comes after Austria, Germany, France and Switzerland announced recalls — adding up to hundreds of batches — on Thursday. AFP reported that recalls are under way in Romania, Hungary and Poland too.
Shares of Danone fell as much as 4% in Paris on Friday. The stock was down 6.5% so far this year through Thursday’s close.
The recalls are the largest yet for Danone and could be a bigger financial hit than previously expected. Bloomberg Intelligence’s Duncan Fox said in a note the
estimated cost of recalls could “far exceed” the €50 million originally projected.
“The damage from Danone’s UK infant formula recall can be more reputational than financial if consumers decide to change brands due to the news,” he wrote.
The growing global formula contamination crisis has also ensnared Nestlé SA and Groupe Lactalis. More callbacks were expected after European food safety a
uthorities recommended new lower toxin levels for European nations earlier this week.
‘Precautionary’
Danone began recalling select batches of product in mid-January, starting in Singapore.
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The company later issued another larger recall following a change in toxin guidance from Irish food safety authorities.
In a statement, Danone said it initiated “a precautionary recall process of specific batches of produ
cts on January 23rd and we have implemented additional ingredient controls.” It didn’t specifically mention the latest recalls in the different European countries.
The contamination originated from arachidonic acid oil, which is often added to infant formula. While no company has stated the source of the contamination, the supplier has since been identified as China’s Cabio Biotech Wuhan Co.