Nestle sugar controversy: Nestle India shares see worst day in 3 years, drop 5%

Apr18,2024



Nestle sugar controversy, Nestle IndiaThe shares fell as much as 5.4% to an intra-day low of Rs 2,409.55 on the BSE on Thursday. This significant decline came after the revelation that the multinational FMCG giant adds sugar baby food products Sold in India, this practice is not followed in Europe and Britain. An ET report said the health ministry has expressed concern over the issue.
The fall in shares of Nestle, considered a long-term compounding machine, was the worst one-day decline in the past three years. The government has taken suo motu cognizance of a report published in today's Times of India, which highlights Nestle's shares. The practice of adding sugar to infant milk sold in less affluent countries, including India, while it is avoided in primary markets such as Europe and the UK.
The revelation came to light when Swiss investigative organization “Public Eye” and IBFAN (International Baby Food Action Network) sent samples of Nestlé baby food products marketed in Asia, Africa and Latin America to a Belgian laboratory for analysis.
Nigel Rollins, a WHO scientist, pointed to the double standard. Avoids it, but easily adopts it among economically deprived people. The environment “presents challenges in terms of both public health and morality.”
The report further revealed that in India every Cerelac Baby Cereal This type contains an average of about 3 grams of added sugar per portion. In contrast, Nestle's wheat-based Cerelac cereal, designed for six-month-old infants, sold in Germany, France and the UK, does not contain added sugar. However, the same product contains more than 5 grams of sugar per serving in Ethiopia and more than 6 grams in Thailand.
As the controversy unfolded, with health experts criticizing “double standards”, Nestlé responded by saying that it had reduced the sugar in its infant cereals, depending on the type, by 30% over the past five years. “We regularly review and improve the portfolio to reduce added sugar levels,” a company spokesperson told ET Now.



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