Amid regulatory changes, HUL withdraws 'health' label from Horlicks
In response to recent regulatory changes in the health drinks category, Hindustan Unilever (HUL) has rebranded its "health food drinks" category as "functional nutritional drinks" (FND). It has also dropped the "health" label from Horlicks. This alteration came after the Ministry of Commerce and Industry instructed e-commerce platforms to remove drinks and beverages from the "healthy drinks" category.
Why does this story matter?
The regulatory scrutiny surrounding the health drinks category stems from the absence of a clear definition for "health drinks" under the Food Safety and Standards Act 2006. The Food Safety and Standards Authority of India (FSSAI) recently directed e-commerce platforms to refrain from categorizing dairy, cereal, or malt-based beverages as "health drinks" or "energy drinks" due to the lack of clarity. This move aims to prevent consumer confusion and misleading advertising practices.
Government directs websites not to label Bournvita as health drink
These developments follow concerns raised about high sugar levels in beverages, exemplified by Mondalez India-owned Bournvita's scrutiny a few days ago. The government recently directed e-commerce websites not to label Bournvita and similar beverages as health drinks due to undefined categories in the country's food laws. This directive was issued after a social media influencer claimed that Bournvita contains high sugar levels, leading Mondelez India to send a legal notice to the influencer.
HUL's CFO unveils the rebranding
Meanwhile, HUL's Chief Financial Officer Ritesh Tiwari announced the change during the earnings press conference on Thursday. During the conference, Tiwari also emphasized that the shift to the FND label provides a more accurate and transparent description of the category. He highlighted the under-penetration of the FND market, indicating significant growth opportunities.
Nestle under scrutiny for adding sugar to infant milk
In a related issue, Nestle has come under scrutiny following reports suggesting that the company adds sugar to infant milk sold in less affluent nations including India, but not in its primary markets like Europe or the UK. The FSSAI initiated an inquiry into the sugar content controversy surrounding Nestle's Cerelac products. In response, Nestle said, "Our Infant Cereal products are manufactured to ensure the appropriate delivery of nutritional requirements...for early childhood."
