It's meant to be ambiguous - it could be someone cuddling the baby, it could also be someone (breast)feeding their baby. It could not be someone bottle feeding the baby, 'cos where is the bottle??
The M bit of the logo (yes, zippi, a bit like those golden arches, too ) is like a heart, as well as round and curvy and soft like breasts (though upside down).
The shading of the 'mother's head' is such that it is looking down at the baby's head, whose shading is such that it is looking up at mum with head turned in, in the way it would be if breastfeeding.
None of this is accidental - it's a highjack of breastfeeding imagery. Remember, too, that the most desirable customers for formula manufactuers are women who want or wanted to breastfeed. If you can get them to switch, maybe partially at first, then you have them long-term, as would-be bf mothers keep their babies on formula for longer than mothers who start off as happy formula feeders (ie they are slower to give ordinary cows milk).
It would make sense for the logo to appeal primarily to breastfeeding mothers, and for them to feel good about switching a) to formula b) to SMA.
This is not remotely controversial.
It's what commercial companies do - they try to maximise sales. Why would infant health or accurate information be a part of this? What information does 'love the milk you give' to someone wanting to choose between formulas?
Where they less restricted by regulations about promotion (eg in the USA), they make the most of this 'freedom' with free samples, TV advertising of first milk, idealised packaging, and the rest of it.