Nestle India is under renewed scrutiny for its widely used baby food product, Cerelac. Global civil society organizations Public Eye and IBFAN have urged the Swiss State Secretariat for Economic Affairs (SECO) to take legal action against Nestle. They accuse the company of engaging in unethical and unfair business practices in low- and middle-income countries, as reported by ToI.
In April, NGOs accused Nestle of "double standards," alleging that its popular baby food brands, including Cerelac, sold in developing nations like India, contain high levels of added sugar. This contradicts WHO guidelines that prohibit such practices. The NGOs criticized Nestle for misleading and aggressive marketing tactics and highlighted the impact of these practices on people in poorer countries. They emphasized the importance of protecting children and the reputation of Nestle's home country.
“We understand that the authorities are conducting analysis of infant cereals and infant formulas sold by all companies in the country," a Nestle spokesperson said.
The company reaffirmed its commitment to compliance and highlighted a 30% reduction in sugar content in their baby food products sold in India over the past five years. Nestle India's Chairman and Managing Director, Suresh Narayanan, emphasized that Cerelac complies with local food regulations. He clarified that the added sugars in their baby food products are well below the limits set by India’s food regulator.
Nestle holds a significant share, about 20%, of the $70 billion global baby food market. In 2022, Cerelac and Nido were top performers, generating over $2.5 billion in sales worldwide, with strong demand in low- and middle-income countries. Following the controversy, the Food Safety and Standards Authority of India (FSSAI) has initiated an inquiry into the sugar content of Nestle's Cerelac products.
Suresh Narayanan clarified that Cerelac contains about half of the permissible limits of sugar set by the Indian food regulator, FSSAI. He mentioned that the sugar controversy has not significantly affected Cerelac sales. WHO guidelines prohibit added sugars in baby food products in many markets. Narayanan also emphasized that Nestle fully adheres to CODEX standards, jointly set by WHO and the Food and Agriculture Organization, and complies with local regulations on nutrient requirements, including limits on added sugars.