Horlicks no more 'health drink', rebranded as 'functional nutrional drink'

Horlicks rebranding: In what seems to be an impact of the ongoing Supreme Court argument against inaccurate claims by FMCG companies, Hindustan Unilever (HUL) has removed ‘health drink’ tag from its age-old popular beverage, Horlicks.

HUL, the parent company of renowned brands such as Horlicks and Boost, on Wednesday announced the repositioning of its 'Health Food Drinks' category to 'Functional Nutrition Drinks' (FND). This comes after the recent actions taken by the Ministry of Commerce and Industry, compelling e-commerce platforms to remove beverages from the 'health drinks' category due to undefined regulatory standards.

Ritesh Tiwari, Chief Financial Officer of Hindustan Unilever, said, "We have changed the labels of the category to FND which is a much better way to call it." Stressing the growth potential within the FND segment, Tiwari highlighted the company's focus on expanding its customer base, enhancing usage, and delivering additional consumer benefits.

HUL also disclosed advancements within its premium FND range, catering specifically to diabetes management and women's health, indicating a strategic shift towards targeted nutritional offerings.

Regulatory scrutiny and market dynamics

The recent regulatory actions stem from the absence of a defined framework for 'health drinks' under India's Food Safety and Standards Act of 2006, prompting interventions by the Food Safety and Standards Authority of India (FSSAI) and the National Commission for Protection of Child Rights. FSSAI's directive to e-commerce platforms to rectify misleading advertisements reflects a broader push for transparency and consumer protection within the food and beverage industry.

Moreover, these developments follow similar controversies, notably surrounding Mondalez India-owned Bournvita, which garnered attention due to its elevated sugar content. Amidst these regulatory shifts, HUL's pivot towards 'Functional Nutrition Drinks' underscores a proactive approach towards regulatory compliance and consumer trust.

Nestlé faces allegations of excessive sugar content in Cerelac baby food

In parallel, Nestlé, the global consumer goods behemoth, has found itself embroiled in controversy over allegations of high sugar levels in its Cerelac baby food products sold in India and other developing nations. A recent investigation conducted by Public Eye and the International Baby Food Action Network (IBFAN) revealed stark disparities in sugar content across different markets, with significant variations observed between regions.

According to the report, Cerelac products marketed in Asia, Africa, and Latin America contain substantial quantities of added sugar, while counterparts in Western markets maintain sugar-free formulations. Nestlé's marketing strategies, leveraging social media influencers and positioning Cerelac as indispensable for infant nutrition, have come under scrutiny for potentially exploiting regulatory gaps and consumer vulnerabilities in emerging economies.