Nestle: Some parents will not come back to our infant formula products after recall
Impact and Response to the Infant Formula Recall
By Richa Naidu
Background of the Recall
VEVEY, Switzerland, June 30 (Reuters) - Nestle has accepted that some parents will not return to buying the company's infant formula products following a widespread recall that began late last year, the company's head of nutrition, Serena Aboutboul, said on Tuesday.
Scope of the Recall
Nestle recalled products across Europe, Asia and the Americas over possible contamination with cereulide, a toxin that can cause nausea and vomiting. Aboutboul noted that the company had lost market share and said it would be a while before sales return to pre-recall levels.
Challenges for Nestle Leadership
The infant formula crisis posed a serious challenge to CEO Philipp Navratil, who made a video apology to consumers just a few months into his tenure.
Market Share and Consumer Trust
Nestle has not got back to pre-recall market share levels, Aboutboul said, and the company understands that regaining consumer trust in such a sensitive category will take time.
Consumer Sentiment
"When you have unrest from parents, they will not ... come back. We know that," Aboutboul said.
Recovery Efforts and Future Outlook
Nestle has been in "recovery mode", Aboutboul said, but is confident of regaining market share and is working with paediatricians and healthcare professionals for recommendations and to win back consumers.
(Reporting by Richa Naidu. Writing by Alexander Marrow. Editing by Mark Potter)
