Nestle India shares experienced a significant decline in early trading on the Bombay Stock Exchange (BSE) following a report alleging high sugar content in the company's baby food products sold in India. The shares fell over 5% initially and were down 3.17% to Rs 2,466.40 by around 1.05 pm.
The report, conducted by Swiss investigative organization Public Eye, found that Nestle's baby food brands promoted in low and middle-income countries, including India, contained high levels of added sugar, contrary to international guidelines aimed at preventing obesity and chronic diseases.
Specifically, the study revealed that all variants of Nestle's Cerelac baby cereals sold in India contained added sugar, averaging nearly 3 grams per serving. This revelation has sparked concerns among investors and consumers alike.
In response to the report, Nestle India emphasized its commitment to nutritional quality and stated that it has been actively reducing sugars in its baby food products over the past five years. The company claimed to have reduced added sugars by up to 30% in its infant cereals' portfolio, prioritizing high-quality ingredients while maintaining safety and taste.
This controversy adds to Nestle's history of facing challenges related to its food products. In 2021, an internal presentation revealed that a significant portion of its mainstream food and beverage offerings did not meet recognized health standards. Additionally, the company faced a major setback in 2015 when its popular Maggi noodles were banned due to the presence of excess lead and monosodium glutamate (MSG), leading to a significant decline in market share and revenue.
These controversies underscore the importance of maintaining transparency and adhering to strict quality standards in the food industry to safeguard consumer trust and protect shareholder value.
