Nestle sugar controversy: Nestle India‘s shares plummeted by up to 5.4% on Thursday, reaching a day’s low of Rs 2,409.55 on the BSE. This significant drop followed the revelation that the multinational FMCG giant adds sugar to baby food products sold in India, a practice not followed in Europe and the UK. The health ministry has expressed concern over this issue, stated an ET report.
The decline in Nestle’s shares, which are considered a long-term compounding machine, marked the worst single-day drop in the past three years.The government has taken suo-motu cognizance of a report published in today’s Times of India, which highlighted Nestle’s practice of adding sugar to infant milk sold in less affluent countries, including India, while refraining from doing so in its primary markets like Europe and the UK.
The revelation came to light when “Public Eye,” a Swiss investigative organization, and IBFAN (International Baby Food Action Network) sent samples of Nestle’s baby food products marketed in Asia, Africa, and Latin America to a Belgian laboratory for analysis.
Nigel Rollins, a scientist at WHO, pointed out the double standard, stating, “A double standard exists here that cannot be rationalized,” adding that the scenario where Nestle refrains from incorporating sugar into these commodities in Switzerland but readily embraces it in economically disadvantaged environments “poses challenges both in terms of public health & ethics.”
The report further revealed that in India, every Cerelac baby cereal variant contains additional sugar, averaging nearly 3 grams per portion. In contrast, Nestle’s wheat-based Cerelac cereals designed for six-month-old infants sold in Germany, France, and the UK do not contain added sugar. However, the same product contains more than 5 grams of sugar per serving in Ethiopia and 6 grams in Thailand.
As the controversy unfolded, with health experts criticizing the “double-standards,” Nestle responded by stating that it has reduced sugar by up to 30% in the past five years, depending on the variant, in its infant cereals. A company spokesperson told ET Now, “We regularly review and reformulate portfolio to further reduce levels of added sugar.”
The decline in Nestle’s shares, which are considered a long-term compounding machine, marked the worst single-day drop in the past three years.The government has taken suo-motu cognizance of a report published in today’s Times of India, which highlighted Nestle’s practice of adding sugar to infant milk sold in less affluent countries, including India, while refraining from doing so in its primary markets like Europe and the UK.
The revelation came to light when “Public Eye,” a Swiss investigative organization, and IBFAN (International Baby Food Action Network) sent samples of Nestle’s baby food products marketed in Asia, Africa, and Latin America to a Belgian laboratory for analysis.
Nigel Rollins, a scientist at WHO, pointed out the double standard, stating, “A double standard exists here that cannot be rationalized,” adding that the scenario where Nestle refrains from incorporating sugar into these commodities in Switzerland but readily embraces it in economically disadvantaged environments “poses challenges both in terms of public health & ethics.”
The report further revealed that in India, every Cerelac baby cereal variant contains additional sugar, averaging nearly 3 grams per portion. In contrast, Nestle’s wheat-based Cerelac cereals designed for six-month-old infants sold in Germany, France, and the UK do not contain added sugar. However, the same product contains more than 5 grams of sugar per serving in Ethiopia and 6 grams in Thailand.
As the controversy unfolded, with health experts criticizing the “double-standards,” Nestle responded by stating that it has reduced sugar by up to 30% in the past five years, depending on the variant, in its infant cereals. A company spokesperson told ET Now, “We regularly review and reformulate portfolio to further reduce levels of added sugar.”