In 1981, WHO adopts an International Code of Marketing of Breast-milk Substitutes and Nestlé established the Nestlé Coordination Centre for Nutrition (NCCN). In February 1982, Nestlé's top executives fly to Dayton, Ohio for a secret meeting with the Methodist Task Force. Following this meeting, Nestlé announces its' intention to follow the WHO Code and issues detailed instructions to marketing personnel.

The Nestlé Infant Formula Audit Commission (NIFAC) also known as the Muskie Commission is established to monitor compliance with the WHO Code. In 1983, a chance meeting between Niels Christiansen of the NCCN and Douglas Johnson of INFACT leads to direct talks. After talks with WHO, UNICEF, in 1984, Nestlé and Muskie Commission, the activist groups end the first boycott and the International Association of Infant Food Manufacturers (IFM) founded, this association being more inclusive of industry than ICIFI.

The Dialogue Breaks Down

But at the end of 1988, activists attempt to relaunch Nestlé boycott claiming Nestlé reneged on 1984 agreement but they receive little attention in the US. The Nestlé Plan of Action for Infant and Young Child Feeding promises reduction of donations and calls for cooperation of concerned parties, in 1989.

In 1991, the Muskie Commission decides that it has fulfilled its mandate and was disbanded. WHO and UNICEF start the Baby-Friendly Hospital Initiative and IFM agrees to cooperation aimed at ending infant-formula donations to maternity wards and hospitals in developing countries by the end of 1992. Church of England Synod announces the boycott of Nescafé.

In 1994, a report "Breaking the Rules", on alleged violations of the WHO Code by each manufacturer, is published. Nestlé investigates and claims that most charges are unfounded or already corrected. The Church of England Synod suspends the boycott of Nescafé. UNICEF criticises the synod's decision, and Carol Bellamy, named UNICEF executive director in 1995, recommends minimising association with members of IFM.

One year later, a new activist coalition the Interagency Group on Breastfeeding Monitoring (IGBM) appears and publishes in 1997 "Cracking the Code" with allegations against manufacturers. As UNICEF praises the document, Nestlé responds. The same year, the International Paediatric Association adopts a policy of cordial relations with manufacturers, which is criticized one more time by UNICEF. In October, Nestlé CEO Peter Brabeck meets UNICEF Executive Director Carol Bellamy.

At the beginning of 1998, WHO proposes process to resolve differences over code implementation and foster implementation of WHO recommendations by countries. In July, Gro Harlem Brundtland takes office as Director General of WHO and involves herself personally in that process. WHO proposes a roundtable gathering industry and concerned NGOs, under the aegis of WHO, but the NGOs invited refused to participate.