In a notable turn of events, Hindustan Unilever (HUL) has revamped its category of ‘health food drinks’ as ‘functional nutritional drinks’ (FND), shedding the ‘health’ tag from Horlicks. This decision followed the directive from the Ministry of Commerce and Industry to online retail platforms to exclude beverages from the ‘health drinks’ category.
Significantly, the Food Safety and Standards Authority of India (FSSAI) had earlier instructed e-commerce platforms to avoid labeling dairy, cereal, or malt-based beverages as ‘health drinks’ or ‘energy drinks’ due to legal ambiguity. Experts suggest that this regulatory measure aims to mitigate consumer perplexity and deceptive marketing tactics.
Nevertheless, Ritesh Tiwari, the Chief Financial Officer of HUL, articulated that the transition to the FND designation would furnish a more precise and candid portrayal of the category. “The under-penetration of the FND market indicates substantial avenues for growth,” he remarked during HUL’s earnings briefing on Wednesday.
Former director general of health service (DGHS) Dr. Jagdish Prasad remarked on the government’s resolute stance. “The government’s directives are clear-cut, emphasizing the importance of safeguarding health. However, companies often employ diverse strategies to promote their merchandise,” Dr. Prasad noted.
A recent examination of Bournvita unveiled elevated sugar levels, prompting regulators to issue explicit instructions concerning beverages. “All online retail companies and portals are hereby instructed to remove beverages, including Bournvita, from the ‘health drinks’ category on their platforms,” the Ministry of Commerce and Industry stated in a notification.
In recent times, the Indian beverages and spices sector has faced intense scrutiny, even extending beyond national borders. Hong Kong imposed a ban on the sale of renowned Indian brands MDH and Everest Food Products following alleged traces of the carcinogenic pesticide ethylene oxide in various spice blends. Previously, Singapore undertook similar measures against Everest, alleging the presence of ethylene oxide exceeding permissible thresholds.
A Swiss investigative entity, Public Eye, collaborated with IBFAN (International Baby Food Action Network) to dispatch samples of Nestle’s infant nutrition products marketed in Asia, Africa, and Latin America to a Belgian laboratory for analysis. According to the findings, Nestle incorporates sugar into infant formula sold in less affluent nations, including India, while refraining from doing so in its primary markets such as Europe or the UK.
A senior official from the FSSAI informed that the authority has commenced the collection of samples from all beverages and spices available in the domestic market to verify compliance with standardized manufacturing and production procedures. “If any entity is found to have contravened established protocols, stringent action will be taken against them,” the official asserted.