Nestle CEO says Maggi is recovering faster than expected after a five-month hitch

Paul Bulcke, global CEO of Nestle SA, has said that their India unit is recuperating at an unexpectedly faster rate after the setback prompted by Maggi ban last. The ban had resulted in Maggi, Nestle’s flagship product in India, being off the shelves for five months.

"India is recovering faster than anticipated, although it still weighed on the Asia zone's overall performance. In India, the Maggi noodles business gained back market share but the business results were affected by the unfavourable comparatives," Bulcke said while addressing investors after the company's Q1 earnings reports. Nestle follows a calendar financial year of January-December.

Nestle performed the strongest in European and South East Asian markets, as well as in Africa. Organic growth for the Asia, Africa, Oceania (AOA) zone, which Nestle takes as a combined entity in earnings, was 2.1% as compared to 0.5% in the last quarter.

Even though Maggi has regained its market share and has re-established itself as the leader of the noodles segment, the share is significantly lower than what it had before it faced the ban in last June. The Food Safety & Standards Authority India (FSSAI) had banned Maggi after it was found that it contained more than permissible amount of lead, along with mislabelling of flavour enhancer monosodium glutamate (MSG).

It was only after multiple clearances, first by the Bombay High Court then by government labs, that Nestle was allowed to resume the sales of Maggi noodles in November.

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