The Maggi noodles crisis in 2015 emerged as possibly the biggest PR disaster for Nestle India
In 2014, food safety regulators from UP reported that samples of Maggi Noodles had high levels of monosodium glutamate apart from high lead content above the permissible level. At the time, the labelling on packets of Maggi noodles indicated that Maggi had no added MSG
Following the controversy, Nestle had to recall the popular snack from the market. Between June 5 and September 1, 2015, nearly 38,000 tonnes of Maggi noodles were recalled across the country and destroyed. Maggi’s share in the Indian market went down from 80% to zero
Speaking at BT Mindrush 2023, Suresh Narayanan, CMD, Nestlé India, said that one should speak widely about true facts. “The first thing we learned was perception is reality. You might have a reality you may think it is the truth, but unless you speak about it, engage about it, you make a big mistake.”
Narayanan said all corporates should be ready for crises situations and should know how to turn around things. “At the peak of good health, you can have a heart attack, that's what happened to us. We realised to be connected, to innovate, and to get leadership at the right level to take right actions.”
Nestle’s Narayanan said at any given time the culture of an organisation is the key. "We worked a lot on the culture of the company. We spoke about actions, failures, innovations. Finally, how do you keep a balance between growth, profitability, and interest of all stakeholders,” he said
In the year 2014, the gross domestic sales of Nestle in India was to the tune of Rs 10,129 crore, where Maggi had a major share
Five months after the brand was forced to recall its product over safety concerns, Nestle India’s Maggi noodles returned to shelves in November 2015
Last month, a report said Nestle is among final bidders competing to acquire ‘Ching’s Secret’ owner Capital Foods Pvt as it seeks to boost its presence in a fast-growing economy like India, with any transaction likely to value the firm at more than $1 billion