"Just eight years ago, the French clan behind Groupe Lactalis, the world's biggest dairy company, and its chief executive officer - third-generation scion Emmanuel Besnier - went through a similar crisis after dozens of infants who consumed formula produced at one of its plants in western France were poisoned by salmonella. Lactalis was criticized for acting too slowly and charged for failing to recall the product, deception and involuntary injuries. The case is ongoing."
"Now, fears that baby milk powder has been tainted with a toxin that can cause vomiting, diarrhea or worse have forced Lactalis and better known food giants Nestle SA and Danone SA to pull products from store shelves around the world over the last few weeks. French authorities are investigating whether two infant deaths are linked to consumption of Nestle's Guigoz brand."
"For closely held Lactalis, which announced its baby formula recall on Jan. 21 - about two weeks after Nestle first began pulling its own products - the spotlight is turning to its controlling family, with questions about whether they moved quickly enough. " In the case of Lactalis, the family is ultimately accountable," said Philippe Pele-Clamour, an adjunct professor at business school HEC Paris who specializes in family firms. "This can be a problem in crisis management.""
A recall of potentially dangerous infant formula produced by Groupe Lactalis revived memories of a salmonella crisis eight years earlier that poisoned dozens of infants and resulted in ongoing legal charges. Recent fears focus on possible cereulide contamination traced to arachidonic acid oil from a Chinese supplier, prompting Lactalis, Nestle, and Danone to withdraw products worldwide. French authorities are investigating whether two infant deaths are linked to Nestle's Guigoz brand. Public reports of recalls, lawsuits, and regulatory failures depressed Nestle and Danone share prices. For closely held Lactalis, control by the Besnier family has focused scrutiny on their speed and accountability in crisis management.
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