Kiki

You have just run into a problem many nurses encounter because they work at a hospital that has a contract with a formula company (obvious Code violation), but if we all left - who would take care of the moms and babes?

It does seem like a dirty trick has been played on you.  If it was me, my initial reaction would also be to tell them off and leave (as dramatically as possible), but probably more because I would have felt lied to and betrayed than because I think it would improve things. 
 
These would be my suggestions:  
Schedule a proper meeting with the editor and inform the editor it is to discuss The Code and what protecting, promoting, and supporting breastfeeding means, and to confirm the terms of your employment.  
Provide reading material to the editor ahead of the meeting, so everything you say will not be a surprise.  
Know that change happens slowly, and do not ask for a promises at the meeting.  
Go in with a written agenda so you do not forget things and 2-3 suggestions for article topics that are about the importance of The Code and protecting, promoting, and supporting breastfeeding.  
Try to not do all the talking, listen.  Know that those awkward pregnant pauses can sometimes give someone (the editor, one would hope) an opportunity for enlightenment, embarrassment, and even suggestions (that you would like to make but that will be carried out if *the editor* suggests them).  
Stay focused on the mums.

It would seem you do not know something here - maybe there is a contract that needs to be fulfilled, maybe the bottles went out without editor approval.  It does seem you are in a powerful position to effect change, and I can understand why you might work at staying.  

Be well,
Joy


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