NEW DELHI: Food giant Nestle India is in spotlight again over its widely-sold baby food Cerelac. Global civil society organisations, Public Eye and IBFAN, have submitted a formal request to the Swiss State Secretariat for Economic Affairs (SECO), urging legal action against Nestle “unethical and unfair business practices” in low- and middle-income countries.
Accusing the Swiss major of “double standards”, the NGOs had in April said the company’s two best-selling baby food brands sold in developing countries, including India, have a high content of added sugar, which is prohibited under WHO guidelines.Nestle’s misleading and aggressive marketing and its double standard over added sugar are unfair business practices that affect hundreds of thousands of people in poor countries, they said. The cessation of unethical practices is important not only to protect children, but also the reputation of Nestle’s home country, they said.
When contacted, a Nestle India spokesperson said: “We understand that the authorities are conducting analysis of infant cereals and infant formulas sold by all companies in the country.” It maintained its commitment to compliance and highlighted a reduction in sugar content by up to 30% in its baby food products in India over the past five years.
In April, days after the issue became public, Nestle India’s chairman and managing director Suresh Narayanan had said Cerelac complied with local food norms, saying added sugars in the baby food are much lower than what India’s food regulator permits.
The food giant controls 20% of the baby food market, valued at nearly $70 billion. With over $2.5 billion in global sales in 2022, Cerelac and Nido are some of Nestle’s best-selling baby food brands in low- and middle-income countries.