Nestlé's brands have faced criticism in India
Source: The DairyNews
Nestlé's Cerelac has found itself embroiled in controversy following revelations by a Swiss investigative organization regarding high levels of added sugar in its products sold in India and other developing markets. This disparity in product quality between different markets has raised uncomfortable questions for Nestlé, particularly as samples from European markets showed no added sugar.
While Nestlé has stated that it has reduced added sugar by 30% over the last five years, industry observers remain skeptical about whether this response is sufficient. Nisha Sampath, managing partner at Bright Angles Consulting, suggests that the brand needs to focus on developing healthier, low-sugar innovations for children to maintain relevance in the health and nutrition space.
The scrutiny extends beyond Cerelac to health drink brands like Bournvita, which have also faced criticism. The Ministry of Commerce and Industry's directive to e-commerce firms to delist such drinks from the 'health drinks' category has highlighted concerns about false positioning and a breach of consumer trust. Clearer labeling of ingredients and added sugar is seen as essential by N Chandramouli, CEO at TRA Research.
In response, Hindustan Unilever has rebranded its Horlicks and Boost offerings as "functional nutritional drinks." While this move may not have an immediate impact on the brands' presence on e-commerce platforms, experts emphasize the need for brands to revisit their positioning and ensure transparency in campaign messaging.
Despite these challenges, experts remain uncertain about the long-term impact on the brands. While some consumer groups may express outrage, others believe that the brands' advertising prowess and market dominance may mitigate any significant consequences. However, the consensus is clear: brands must prioritize honesty and transparency to maintain consumer trust and loyalty in the long run.
The scrutiny extends beyond Cerelac to health drink brands like Bournvita, which have also faced criticism. The Ministry of Commerce and Industry's directive to e-commerce firms to delist such drinks from the 'health drinks' category has highlighted concerns about false positioning and a breach of consumer trust. Clearer labeling of ingredients and added sugar is seen as essential by N Chandramouli, CEO at TRA Research.
In response, Hindustan Unilever has rebranded its Horlicks and Boost offerings as "functional nutritional drinks." While this move may not have an immediate impact on the brands' presence on e-commerce platforms, experts emphasize the need for brands to revisit their positioning and ensure transparency in campaign messaging.
Despite these challenges, experts remain uncertain about the long-term impact on the brands. While some consumer groups may express outrage, others believe that the brands' advertising prowess and market dominance may mitigate any significant consequences. However, the consensus is clear: brands must prioritize honesty and transparency to maintain consumer trust and loyalty in the long run.
