The Booktrust has been forced to scrap a new teenage book prize after a group of prominent British children's writers told the company that they never want to be entered for the award because of its sponsorship by Nestlé, the controversial Swiss-based multinational.

Gillian Cross, Melvin Burgess and Tim Bowler, all previous winners of the Carnegie Medal, are among seven leading writers who have signed a letter stating that they "do not wish to be associated" with Nestlé's prize "in any way".

...a Nestlé Teenage Prize cannot take place if it doesn't have the support of writers.

Chris Meade Booktrust Director

The letter, composed by Melvin Burgess, accuses Nestlé of continuing to "violate" codes on the marketing of powdered baby milk in the Third World. This is not the first time the sponsorship of the award by Nestlé has caused controversy. Last year, the author Richard Platt donated his £750 runner-up prize to Baby Milk Action, the campaign group co-ordinating the anti-Nestlé boycott.

Chris Meade, the Booktrust's director, said that the prize was being suspended and that "a Nestlé Teenage Prize cannot take place if it doesn't have the support of writers,".

A Nestlé spokeswoman said: "We are aware that Book Trust is in contact with a small group of authors who have expressed concern about our sponsorship. Our marketing of infant formula in the developing world changed many years ago and is in line with the World Health Organisation code."