On May 4, a2 Milk disclosed a voluntary recall of three batches of its a2 Platinum infant milk formula that were sold in the United States after testing identified the presence of cereulide, a heat-stable toxin produced by certain strains of Bacillus cereus. The announcement coincided with a sharp market reaction, with the company’s shares falling 13.8% to NZ$7.67 in early trade - the lowest level recorded since mid-July 2025.
The recall covers 63,078 tins of product manufactured by a2 Milk’s associate company, Synlait Milk. Of those, nearly 16,428 tins are believed to have reached consumers. Synlait has stated that it manufactured the affected formula in compliance with all relevant standards that were in force at the time of production.
a2 Milk did not provide details on the production or distribution dates for the specific batches that are being recalled. The company said the product had been discontinued and withdrawn from sale before the recall notice was issued, and that it is cooperating with the U.S. Food and Drug Administration as the issue is investigated. According to a2 Milk, there have been no reported illnesses linked to the product.
Cereulide is produced by certain Bacillus cereus strains and is notable for its heat stability, meaning the toxin can survive cooking or reheating and remain present in food materials, including infant formula. The detection and subsequent recall echo precautionary measures taken earlier this year by other major dairy firms, when companies such as Nestle, Danone and Lactalis carried out similar recalls of infant formula over comparable concerns.
Market analysts have highlighted the potential reputational risks for a2 Milk. Citi analysts noted that, although the recall is limited to the company’s U.S. label product, there is a risk that the issue could spread on social media in China and harm the brand. That concern is particularly salient because China, alongside other Asian markets, accounted for nearly 70% of a2 Milk’s total revenue in fiscal 2025.
The recalled product was sold via a2 Milk’s website, Amazon and other channels as part of Operation Fly Formula - a U.S. government-led emergency program launched in 2022 to help address shortages of infant formula. The company said affected product had been pulled from sale prior to the formal recall announcement and reiterated that it is working with regulators in the United States.
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