French authorities probe Nestlé, Danone, Lactalis over contaminated baby formula – CNBC TV18

French authorities have launched investigations into five infant formula producers, including Nestlé, Danone, and Lactalis, over concerns of contamination in baby formula products. The probes come amid a growing crisis of product recalls in recent weeks, leaving parents and investors on alert.

The investigation focuses on possible contamination by cereulide, a heat-stable toxin that can cause nausea, vomiting, and diarrhoea. While symptoms usually subside within a day, exposure can sometimes result in more severe complications. Other brands under scrutiny include Babybio and La Marque En Moins.

Paris’ public prosecutor said the inquiries target potential charges of “deception regarding goods posing a danger to human health,” which carries penalties of up to seven years in prison and fines of up to €3.75 million ($4.45 million). The probes, led by the office’s public health division, aim to determine whether the companies violated safety regulations, failed to recall tainted products promptly, or endangered lives.

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The investigations will coordinate with ongoing probes in Bordeaux, Angers, and Blois, where authorities are examining deaths of infants potentially linked to contaminated formula. The contamination is suspected to be associated with arachidonic acid oil, an additive commonly used in infant nutrition products.

The European Union’s food safety authorities recently recommended lower toxin thresholds, prompting recalls across several countries by Nestlé, Danone, and Lactalis.

Liquid formula can show higher levels of cereulide than when it is in powdered form, and Nestlé’s voluntary recall suggests it has detected cereulide levels above its own limit.

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Nestle said its strict internal limit of 0.2 ng/g for cereulide in infant formula was more stringent than the new European Food Standards Agency guidance of 0.43 ng/g.

Nestle first detected low cereulide levels in product samples in late November, but only confirmed that an oil blend containing arachidonic acid oil (ARA) was the cause of contamination on December 24.