Nestle India shares tumble amid added sugar controversy in baby foods

Nestle India’s shares experienced a significant drop on Thursday following charges from a Swiss- based organization accusing the multinational food company of including sugar in infant food products.

Today, shares ended 3.28% lower at 2,462.55 rupees on the National Stock Exchange.

The centre has taken notice of these charges against the multinational food company. Public Eye, a Swiss investigative organization, conducted an inquiry revealing that Nestle’s baby food product Cerelac in India contains nearly 3 grams of sugar per serving on average, contrary to WHO guidelines prohibiting added sugars in baby food products.

Government sources indicate that the Food Safety and Standards Authority of India (FSSAI) is investigating the report and will present it to the scientific panel for review. In response to queries from ANI, Nestle defended its products’ nutritional quality for early childhood and claimed to prioritize high-quality ingredients. They mentioned a reduction of up to 30% in added sugars in their infant cereals over the past five years.

In response to queries from ANI, Nestle replied, “We believe in the nutritional quality of our products for early childhood and prioritize using high-quality ingredients. Over the past 5 years, Nestle India has reduced added sugars by up to 30%, depending on the variant, in our infant cereals portfolio (milk cereal based complementary food). 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 report claims that Nestle has not only violated WHO guidelines in India but also in several Asian, African, and Latin American countries by adding honey or sugar to baby food products.

According to the report, laboratory testing of 15 Indian Cerelac products found that each serving of cereal had more than 2.7 grams of added sugar. The labelling from Nestle emphasizes the nutrients, but added sugar is not as clearly displayed.

It highlights the differences in sugar content between products sold in different income-level countries, with higher-income countries having lower or no added sugar compared to poorer nations.

“Cerelac wheat-based cereals for six-month-old babies sold by Nestle in Germany and the United Kingdom have no added sugar, while the same product contains over 5 gm per serving in Ethiopia and 6 gm in Thailand,” the study said.

Out of 115 Nestle products examined across various markets in Asia, Africa, and Latin America, 108 were found to contain added sugar. This investigation raises concerns about transparency in labeling and adherence to global health guidelines, particularly regarding sugar content in baby food products.