Shares of Nestle India Ltd fell about 2 per cent in Thusrday's trade amid a report suggesting, contrary to international norms, Nestlé adds sugar and honey to infant milk and cereal products sold in many poorer countries. The added sugar, as per the report, is in the form of sucrose or honey in samples of Cerelac, a cereal aimed at children aged between six months and two years; and Nido, a follow-up milk formula brand intended for use for infants aged one and above.
The government has taken suo-moto cognisance of reports that Nestle reportedly added sugar to infant milk sold in India. “We have taken cognisance of the report regarding Nestle and will investigate the matter after doing due diligence”, a top government official told Business Today TV.
Following the development, Nestle India shares fell 1.73 per cent to hit a low of Rs 2503.05 on BSE. With this, the stock is down 5.98 per cent in 2024 so far against a 6.52 per cent drop in the BSE FMCG index during the same period.
The resuls were found after a Swiss investigative organisation, Public Eye, sent samples of the multinational’s baby-food products sold in Asia, Africa and Latin America to a Belgian laboratory for testing.
Nestle India, told several publications that the FMCG major cut “added sugars” by up to 30 per cent in its infant cereals portfolio over the past five years.
The company’s statement added, “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 Public Eye findings was first reported by the Guardian. The report claimed in India, “all Cerelac baby cereals contain added sugar, on average nearly three grams per serving.”