Nestlé share price fell more than 4% today after reports of Nestlé adding sugar and honey to infant milk and cereal products sold in many poorer countries surfaced. It is important to note that this violates international laws and food standards.
The sugar that was added to cereal products was in the form of honey or sucrose. The cereals were aimed at kids between 6 months to 2 years.
After these reports a govt official as quoted by Business Today said. “We have taken cognisance of the report regarding Nestle and will investigate the matter after doing due diligence”
The report has raised concerns about Nestle's adherence to international guidelines aimed at combating obesity and chronic diseases.
In a joint investigation, a Zurich-based watchdog and the International Baby Food Action Network (IBFAN) sent samples of popular baby food from Nestle to a testing laboratory in Belgium. The study examined 150 products marketed by the company in low and middle-income countries, including popular brands like Cerelac and Nido.
The findings revealed that almost all wheat-based Cerelac cereals by Nestle in these regions, targeted at infants six months and older, contained added sugar averaging 4 grams per serving, equivalent to a sugar cube.
The highest levels of added sugar per serving were found in the Philippines at 7.3 grams, followed by 6.8 grams in Nigeria and 5.9 grams in Senegal. In India, all 15 Cerelac baby products were found to contain an average of nearly 3 grams of added sugar per serving.
Interestingly, the same product is sold without added sugar in Germany and the UK, while containing nearly 6 grams in Ethiopia and Thailand, the study noted.
Shortly after this Nestlé India released a statement saying “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.”