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Nestlé, Lactalis and Danone all feature in investigations by the Paris prosecutor’s office into the infant-formula recall linked to the cereulide toxin. 

All three could face fines if a number of accusations against the companies prove valid. Smaller baby-formula manufacturers Vitagermine-owned Babybio and La Marque en Moins are also part of the investigations, which number five in total. 

An initial European recall was kicked off in December by Nestlé following the detection of the cereulide toxin in batches of its infant formula. It was then expanded globally by the Swiss group in January, when French peers Lactalis and Danone also recalled products, along with some smaller producers. 

The source of the toxin, which is linked to the bacterium Bacillus cereus, has been traced to an ingredients supplier in China of arachidonic acid (ARA) oil. 

None of the five companies forming the Paris prosecutor’s office investigation had responded to Just Food’s request for comment at the time of writing.

Nestlé is offloading the ice-cream assets that do not sit within its Froneri joint venture with private-equity firm PAI Partners. 

The Swiss giant is in “advanced negotiations” with Froneri on a possible deal. 

Nestlé CEO Philipp Navratil said the assets up for sale generate “just shy” of SFr1bn ($1.2bn) in sales and centre on six markets. 

Navratil said the sale is in progress and should be completed by early next year, insisting “there is no plan to exit the JV with Froneri”. 

Like Unilever, Nestlé will maintain a distant presence in ice cream but outside its core corporate structure. 

The recently installed Navratil is also rejigging Nestlé’s structure around four areas: coffee; pet food; nutrition; and food and snacks. Nutrition and Nestlé Health Science will be combined while the group will remove reporting units for confectionery and prepared foods.

Kraft Heinz has put its idea to split in two on hold, with the US food-and-drinks group deciding instead to focus on getting the business growing again.

In September, the Heinz ketchup owner announced plans to create two businesses with “greater strategic and operational focus” to, the company said, “drive better performance”. 

However, Steve Cahillane, Kraft Heinz’s recently installed CEO, said: “Since joining the company, I have seen that the opportunity is larger than expected and that many of our challenges are fixable and within our control.

“My number one priority is returning the business to profitable growth, which will require ensuring all resources are fully focused on the execution of our operating plan.” 

Cahillane’s comments came alongside the publication of Kraft Heinz’s annual financial results for 2025, which included lower sales, a decline in gross profits and a near $6bn net loss after the company booked more than $6bn in goodwill impairment losses in its accounts.

The chief executive of PepsiCo has insisted the company sees “more opportunities than threats” from the rising use among consumers of GLP-1 drugs. 

Food manufacturers and grocers are weighing up how the popularity of the medication could affect sales and how they might offer different products as users’ appetites change. 

Data appears to show a reduced appetite for snacks and also increased interest in products containing protein and fibre. 

Speaking to analysts, PepsiCo CEO Ramon Laguarta was asked to address investors’ “concern” about GLP-1 drugs “head on”. 

He said: “I think there are more opportunities than threats but there are both. The way we’re reacting is multiple.” 

Laguarta said households with a family member on the drugs were continuing to “engage in our category but they do it in smaller portions”.  

He also outlined the “big opportunities” in meeting demand from users for products offering “hydration”, fibre and protein.

General Mills has wiped out any prospect of organic sales growth in its current financial year as the company’s sales volumes take longer to recover than anticipated amid muted consumer sentiment in the US. 

The US-based manufacturer is resting its laurels on innovation, particularly in protein, fibre, health and weight management, to drive sales and restore volumes. 

With the company already into its financial third quarter, General Mills chairman and CEO Jeff Harmening cut the group’s forecasts for sales and operating profit. 

The Cheerios and Old El Paso brands owner now expects its annual organic sales to fall by 1.5% to 2%.

The previous forecast in December was for a range of down 1% to up 1%. In the worst-case scenario, the new forecast would match the 2% decline in fiscal 2025. 

General Mills’ adjusted operating profit and adjusted diluted EPS are expected to fall by 16% to 20% this year, compared to the December guidance range of down 10% to 15%.