Lactalis' Product Recall |
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On December 1, 2017, the DGH found 20 cases of salmonella poisoning among French children. An investigation revealed that the poisoning was a result of consuming contaminated baby milk powder produced by Lactalis. The DGH then said it had inspected Lactalis’ Craon factory, and claimed that it had found two drying towers, utilized in making baby milk powder, “filled with salmonella” . The French government then ordered Lactalis to make a product recall... |
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| The Lactalis baby milk powder contamination issue rocked the global baby milk industry. However, it was not the first such incident in the world. One of the most prominent incidents happened in 2008 in China, when six babies died from kidney damage and around 300,000 others fell ill due to the presence of the industrial chemical melamine in baby milk powder produced by state-owned Chinese dairy products company Sanlu Group (Sanlu).. |
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| The Lactalis product recall exposed not only corporate lapses, but also regulatory gaps. The outcry caused by the incident led to the company becoming more transparent and in 47-year-old Emmanuel Besnier (Besnier), Chief Executive Officer (CEO) of Lactalis, making public appearances to provide an explanation for the salmonella contamination. Besnier, who had taken office in 2000, was considered to be ‘an invisible billionaire’ who was rarely photographed or interviewed. In 2017, Forbes magazine had listed Besnier as France’s eighth wealthiest person.. |
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| The incident severely affected Lactalis’ domestic and international markets and brought production at its Craon plant to a halt. On January 11, 2018, owing to the continued non-operation of its Craon plant, the company temporarily laid off 250 workers. The incident was expected to cost the company hundreds of millions of euros... |
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| The French government feared that the issue could adversely impact France’s food exports across the world. That fear propelled it to order an immediate recall in a bid to limit the fallout from the incident. Le Maire said, “I cannot guarantee that right now there isn’t single tin of baby milk left on a shelf in a giant warehouse or in a pharmacy, I think this (further recall) is the strongest guarantee we can give.”.. |
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