The Nestle India stock plunged up to 4.8 per cent at Rs 2423.55 per share on NSE after a study claimed that the company added sugar to Cerelac products sold in India.
The Food Safety and Standards Authority of India (FSSAI) has launched an inquiry into the claims reported in the study conducted by Public Eye, a Swiss investigative organisation, and International Baby Food Action Network (IBFAN), according to sources sited by ET Now. FSSAI said if Nestle is found violating regulations, it will take strigent action against the company
According to the study, 15 Cerelac products sold by the FMCG (fast-moving consumer goods) major contained added sugar amounting to around 3 gram for each serving. The sugar content ranged between 4 gram to 6.8 gram in countries like Brazil, Ethiopia, Thailand and Nigeria.
However, the study found that there was no added sugar in baby food products sold by Nestle in the UK, France and Germany. This has led many experts to slam the company's alleged "double standards".
A Nestle India spokesperson said the company has followed all local regulations and international standards. "We believe in the nutritional quality of our products for early childhood and prioritise using high-quality ingredients. Over the past five years, Nestle India has reduced added sugars by up to 30 per cent, depending on the variant, in our infant cereals portfolio (milk cereal based complementary food). We regularly review our portfolio and continue to innovate and reformulate our products to further reduce the level of added sugars without compromising on quality, safety and taste," the spokesperson said.
