In the wake of the tainted milk scandal that rocked China in 2008, global attention is now turning to another crisis involving infant formula contamination with Chinese ingredients.
This month, three global dairy giants, Nestlé, Lactalis, and Danone, have initiated large-scale recalls worldwide due to the potential contamination of their products with cereulide toxin, linked to the same Chinese supplier, Cabio Biotech.
In France, prosecutors have launched a criminal investigation into two cases of infant deaths in Bordeaux and Angers to determine if they are related to the consumption of contaminated Guigoz brand formula.
According to Le Monde, one infant who was born on December 25, 2025, and passed away on January 8 this year, had consumed the implicated batch of formula.
Another infant, only 27 days old, died on December 23 last year, and upon learning of the recall, the mother contacted authorities, prompting the investigation with the involvement of laboratories.
Although French health and agriculture authorities stress that a direct causal link between the formula and the deaths has not been confirmed, it has sparked significant public concern.
In response to the related anxieties, Nestlé has recalled infant formula in over 60 countries globally. Initially, contamination was discovered at a Nestlé factory in the Netherlands, leading to one of the largest recall actions in the company’s history, affecting multiple brands like SMA, Beba, Guigoz, and Alfamino.
Nestlé stated in a post-recall announcement, “Food safety and the well-being of all infants have always been our top priorities,” emphasizing providing clear, transparent information and support to parents and caregivers throughout the process.
In addition to Nestlé, Lactalis has issued recalls for its Picot brand in 18 countries, while Danone has preemptively recalled a batch of affected products produced in Thailand at the request of Singaporean authorities.
At the core of this crisis lies a critical ingredient – arachidonic acid (ARA) oil. Investigations reveal that ARA oil supplied by Cabio Biotech from China is suspected to contain Bacillus cereus, which produces cereulide toxin that can lead to severe vomiting, diarrhea, and abdominal pain in infants.
The French Ministry of Agriculture confirms that Nestlé and other companies’ recall actions are indeed linked to materials provided by the same Chinese supplier.
Market research indicates that Cabio Biotech is the Chinese biotech company in question, which is a leading player in the market, providing supplies to international conglomerates like Nestlé and Danone, as well as major Chinese dairy companies.
It is noted that following Nestlé’s announcement and recall notice on January 5, Cabio Biotech’s delayed response on January 8 caused a 12.8% plummet in its stock price, sparking market vigilance.
While early speculations from Chinese food industry media suggested issues could stem from Nestlé’s storage or production processes, Cabio Biotech’s lack of disclosure for the testing supposedly initiated on January 7 shifted public opinion.
An investment magazine highlighted potential trust crises for Cabio Biotech and noted significant stock sell-offs by several of its executives.
Cabio Biotech, established in September 2004 in Wuhan, is a listed company specializing in ARA products, enjoying long-term collaborations with notable domestic and international infant formula companies.
With revenues reaching 560 million RMB in 2024, Cabio Biotech heavily relies on its ARA business that contributes over 70% of its revenue.
Concerning China’s highly sensitive infant formula sector, the recent events involving crucial ingredients supplied from China underscore the risks associated with international corporations relying on Chinese supply chains. This situation may exacerbate anxieties among those seeking safe alternatives beyond domestically produced Chinese goods, given the persistent food safety issues under the Communist regime and past incidents like the 2008 melamine-tainted milk scandal.