INDIA- Global civil society organizations IBFAN and Public Eye have filed a formal request with the Swiss government seeking legal action against Nestle India for the alleged high sugar content of its Cerelac baby food products sold in low and middle-income countries.
The request highlights that the products are sugar-free in developed countries like Germany and the United Kingdom. The NGOs allege that each serving of the 15 Cerelac baby products available in India contains an average of 3 grams of sugar, while in low-income countries like Ethiopia, servings can contain as much as 6 grams of sugar.
The NGOs also accused nestle of lacking transparency in their marketing strategy. They accuse Nestle of deliberately showcasing minerals, vitamins and other nutrients in the products, albeit thr9ough idealizing imagery and leave out information on added sugar content.
They described the high sugar content in Cerelac products as a ‘double standard,’ going against WHO guidelines and amounting to unfair business practices. They also criticized the company’s marketing of these products, describing it as ‘aggressive and misleading.’
They reiterated that high sugar content will increase the risk of obesity and other health complications for children living in low and middle-income countries.
Nestle India defended its baby food product range and marketing strategy.
A spokesperson from Nestle India said, “We understand that the authorities are conducting analysis of infant cereals and infant formulas sold by all companies in the country.”
“We remain committed to complying with both local and international standards. We have reduced our sugar content by up to 30% in the past five years.”
The Food Safety and Standards Authority of India (FSSAI) has launched investigations into the sugar content in Cerelac products sold in India.
Although the Nestle spokesperson claims the controversy has not had significant impacts on cerelac sales, Nestle India sales fell by 5.4% when news of the formal request was announced, the largest single day drop in share price in the last 3 years. Market analysts predict this share price drop is a long-term compounding challenge. They predict future shocks in sales and share price, especially if the formal request is accepted and the FSSAI affirms the accusations.
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