How India’s massive Maggi noodle ban is affecting Nestle

By Frazer Jones
Maggi two-minute noodles are recognized as a massively popular convenience food in India, but right now the relationship between the country and one of...

Maggi two-minute noodles are recognized as a massively popular convenience food in India, but right now the relationship between the country and one of Nestlé’s flagship brands is strained at best right. Late last week, six states in total throughout India—including the capital state of Delhi—enacted a ban on the sale of Maggi noodles. The ban comes in response to concerns over food safety, after lab samples indicated that the noodles contained dangerously high amounts of lead and MSG.

RELATED TOPIC: US and Chinese Trade Associations Sign Food Safety Memorandum of Understanding

This is bad news for Nestlé India, as reports of the popularity of Maggi two-minute noodles among consumers within the industry have not been exaggerated. As The Guardian reports, Maggi captures a staggering 80 percent of India’s instant noodle market; the Hindustan Times further reports that Maggi two-minute noodles account more over a quarter of revenue for Nestlé India. If this situation is not rectified soon, Nestlé is going to need to come up with sales strategy for an alternate brand or its position in India is going to be in serious jeopardy.

RELATED TOPIC: Burger King Cuts Out the Beef for First India Location

Nonetheless, while the company is fighting the Maggi ban, it has also been proactive in voluntarily recalling the noodles from all India store shelves nationwide. This week Nestlé discussed with the media the financial toll that the ban is taking on the business: even for a global empire as large as Nestlé, destroying what amounts to £32 million ($50 million USD) worth of product is not easy. Furthermore, Nestlé added that the issue will become even more costly when the ban is worked out and Nestlé is able to ship new product out to retailers to restock. Still, in a press release, the company noted that it is not exactly “a conducive environment to have the product in the market” right now, and a recall is the right move.

RELATED TOPIC:  Nestle Investing €102 Million in Nescafé with a New Energy Efficient Production Line

 “The trust of our consumers and the safety and quality of our products is our foremost priority everywhere in the world. Unfortunately, recent developments and growing concerns about the product have led to confusion for the consumer to such an extent that we have decided to take the product temporarily off the shelves, in spite the product being safe,” Nestlé Global Chief Executive Paul Bulcke told the media in a press release from Nestlé India.

“With the consumer in mind, we will do everything it takes, and are fully engaged with the authorities, to clarify the situation to have MAGGI Noodles back on the shelves at the earliest.”

Let's connect!   

Check out the latest edition of Food Drink & Franchise!

[SOURCE: The Guardian; Hindustan Times; BBC]


Featured Articles

Careers Passport: flagship programme to help jobseekers

A fast-track job scheme designed to remove barriers to enter the food and drink industry has seen over 1,000 training opportunities created.

Coca-Cola, Diginex & Reckitt tech to support supply chains

Respect for human rights is critical to good business, says Coca-Cola’s Paul Lalli, as the company joins diginexLUMEN to catch supply chain forced labour

Luxury food manufacturer Venchi on sustainable packaging

Cècile Osti, of luxury chocolate manufacturer Venchi, on Easter 2022, Sorrento lemons, sustainable packaging, natural ingredients & the pleasure of food

How has the pandemic affected sales at General Mills?


Morrisons partners with Nestle in sustainability scheme


PepsiCo Launches pep+ a Strategic End-to-End Transformation