May 4 (Reuters) - New Zealand's a2 Milk said on Monday it was recalling three batches of its a2 Platinum infant milk formula sold in the United States after testing detected cereulide, sending its shares down nearly 14%.
Shares of the milk producer plunged 13.8% to NZ$7.67 in early trade, plumbing their lowest since mid-July 2025.
The voluntary recall affects 63,078 tins produced by its associate company, Synlait Milk, with nearly 16,428 units believed to have reached consumers. Synlait said it had
manufactured the affected product in compliance with all relevant standards at the time.
A2 did not say when the affected formula was produced and distributed.
Cereulide, a toxin produced by certain strains of Bacillus cereus bacteria, is heat-stable and can persist in food materials, including infant formula, even after cooking or reheating.
The recall mirrors precautionary actions taken by global dairy companies earlier this year, when industry giants like Nestle, Danone, and Lactalis issued similar recalls of infant formula products over the same concerns.
Citi analysts said in a note that while the recall was isolated to a2's U.S. label product, there was a risk that the recall could "make its way on social media in China and cause damage to the brand".
China, alongside other Asian markets, drove nearly 70% of a2 Milk’s total revenue in fiscal 2025.
A2 said the product had been discontinued and pulled from sale before the recall. The company said it was sold via its website, Amazon and other channels as part of Operation Fly Formula, a White House-led emergency initiative launched in 2022 to alleviate a critical shortage of infant formula in the United States.
No illnesses have been reported, according to a2 Milk, which is working with the U.S. Food and Drug Administration on the issue.
(Reporting by Kumar Tanishk in Bengaluru; Editing by Nia Williams)
