Nestlé is in negotiations to sell a factory in France that was at the centre of a fatal E. coli outbreak last year.

The Swiss giant is holding talks with Italy-based pizza supplier Italpizza over the site, which is based in Caudry in northern France.

Discover B2B Marketing That Performs

Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.

Find out more

In a statement, Nestlé said a deal could be finalised “by the start of 2024” after consultation with staff.

In March, the world’s largest food maker said it was closing the plant in the wake of the scandal.

A month later, the group confirmed it had agreed to a settlement with the victims of the outbreak.

Dozens of children fell sick after eating contaminated food – and two died. In April last year, the Paris prosecutor’s office opened an investigation into alleged involuntary manslaughter. Health officials ordered output at the factory to cease five days later.

GlobalData Strategic Intelligence

US Tariffs are shifting - will you react or anticipate?

Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.

By GlobalData

According to Nestlé, the results of an internal investigation at the plant confirmed “the most likely hypothesis: flour contamination by E. coli STEC bacteria”.

The Caudry factory had two lines and, last December, Nestlé received the go-ahead to reopen the line unaffected by the recall.

However, the company decided to shut the factory due to declining sales.

The Caudry site was excluded from a deal Nestlé subsequently struck to run its pizza business in Europe with PAI Partners.

Italpizza has six factories supplying more than 50 markets. In the last year, the company, owned by Dreamfood, has snapped up two businesses: Italian frozen-foods group Mantua Surgelati and local ice-cream maker Italgelato.

Just Food Excellence Awards - Nominations Closed

Nominations are now closed for the Just Food Excellence Awards. A big thanks to all the organisations that entered – your response has been outstanding, showcasing exceptional innovation, leadership, and impact.

Excellence in Action
Winning five categories in the 2025 Just Food Excellence Awards, Centric Software is setting the pace for digital transformation in food and FMCG. Explore how its integrated PLM and PXM suite delivers faster launches, smarter compliance and data-driven growth for complex, multi-channel product portfolios.

Discover the Impact