New Delhi: In a significant development, Hindustan Unilever (HUL) has rebranded its ‘health food drinks’ category as ‘functional nutritional drinks’ (FND) and dropped the ‘health’ label from Horlicks. The decision was taken after the Ministry of Commerce and Industry instructed e-commerce platforms to remove drinks and beverages from the ‘health drinks’ category.
Interestingly, the Food Safety and Standards Authority of India (FSSAI) had earlier directed e-commerce platforms to refrain from categorising dairy, cereal, or malt-based beverages as ‘health drinks’ or ‘energy drinks’ due to the lack of legal clarity. Experts believe that this regulatory move aims to prevent consumer confusion and misleading advertising practices.
However, HUL’s Chief Financial Officer Ritesh Tiwari said that the shift to the FND label will provide a more accurate and transparent description of the category. “Under-penetration of the FND market indicates significant growth opportunities,” he said during the earnings press conference of HUL on Wednesday.
Speaking to ETV Bharat, former director general of health service (DGHS) Dr Jagdish Prasad said that the government is clear in its strategy. “The government is clear in its guidelines and says don’t play with health. However, the companies do have different ways of selling their products,” said Dr Prasad.
A recent scrutiny of Bournvita has also found high sugar levels prompting the regulators to give clear directions regarding beverages. “All e-commerce companies and portals are hereby advised to remove drinks and beverages, including Bournvita from the category of ‘health drinks’ from their sites and portals,” the Ministry of Commerce and Industry said in a notification.
Of late, the Indian beverages and spices industry has come under severe scrutiny even from abroad. Hong Kong banned the sale of popular Indian brands MDH and Everest Food Products following the alleged detection of the carcinogenic pesticide ethylene oxide in several spice mixes. Earlier, Singapore took similar action against Everest alleging the presence of ethylene oxide at levels surpassing permissible limits.
Recently, a Swiss investigative organisation-Public Eye and IBFAN (International Baby Food Action Network) dispatched samples of Nestle’s baby food items marketed in Asia, Africa, and Latin America to a Belgian laboratory for examination. According to the findings, Nestle adds sugar to infant milk sold in less affluent nations, including India, but not in its primary markets like Europe or the UK.
A senior official from the FSSAI told ETV Bharat that the authority has started collecting samples of all beverages and spices available in the domestic market to ascertain whether they are following the standard procedures for manufacturing and production of their products. “If anybody is found guilty of violating standard protocol, strict action will be taken against them,” the official said.
