The world’s most valuable food brand comes under fire after the controversy over the sugar content in its baby food products. It is not the first time Nestle has faced such kind of allegations. A long time back, one of its famous products was prohibited. This time, Nestle is facing allegations of using high sugar in its baby food products sold in developing countries. However, Nestle rejected the allegations put on the company and stated that it had reduced its sugar content a long time back, so all the allegations are baseless.
The allegations of using high sugar were made by Swiss NGO Public Eye and the International Baby Food Action Network (IBFAN) shared a report regarding the same. The report also disclosed stark differences in the sugar content of baby products of Nestle across several countries. The reports have been submitted after carefully examining around 150 baby products sold in different countries. The probe revealed that the products of Nestle that are sold in South Asia (including India), Latin America and Africa markets contain significantly higher sugar levels as compared to the baby products sold in Europe.
After these stirring claims, the Central Consumer Protection Authority (CCPA) has asked the Food Safety and Standards Authority of India (FSSAI) to investigate the matter. If the claims are proven, the company will face serious consequences for adding higher sugar content to baby products. CCPA asked the regulatory authority to be conscious of the accusations made against Nestle. As per a news agency, the FSSAI was probing the report published by a Swiss investigative organization and that it would place the report before a scientific panel.
Allegations Dropped The Share Price Of Nestle
After the allegations of Public Eye, Nestle’s share price dropped by 5%. In Friday’s trading session, the shares of Nestle continued to trade in the negative territory. At 11:20 AM, the shares of the world’s most valuable food fell 0.8%. The share prices of Nestle India tanked on Thursday, 18 April 2024 based on probe reports asserting that the firm sold baby products with higher sugar content to particular markets.
As per the report, the wheat-based product of Nestle such as Cerelac for 6-month-old babies is sold without containing any sugar elements in the German and UK markets but in the South Asian market 15 Cerelac products found having higher counted sugars. The reports revealed that in India, the baby food products of Nestle contained 2.7 grams of added sugar per serving on average. The report further added the sugar content was declared on the packaging in India.
Nestle India claimed that its “infant cereal products are manufactured to ensure the appropriate delivery of nutritional requirements such as protein, carbohydrates, vitamins, minerals, iron etc. for early childhood.”
The allegations put on Nestle caused a lot of stir, the National Commission for Protection of Child Rights (NCPCR) also asked FSSAI to review the claims.
Nestle’s Clarification Over The Alleged Claims
Nestle said in its clarification that the company has already reduced the amount of sugar in baby food products that are sold in India. The company reduced over 30% sugar totally depending on the variants in the last 5 years.