They say, trouble never comes alone and
Nestle is the proof. And this time Maggi will not get a respite in 2 minutes. After excess lead was found by government food-testing agencies through lab tests, yesterday a Nestle made baby food product, Nan, in
Tamil Nadu was found to be containing live larvae.
Hitting an all time low in Sensex and Nifty for consecutive two days, Nestle’s sale has tanked further down on reports of its contaminated baby food formula.
And Nestle’s devastation being an example, both international and domestic food production companies are gearing up to avoid any such rotten situation in near future. As per a news report by The Economic Times, these brands are preparing to limit any collateral damage by declaring more ingredient details on packaging, highlighting product safety in ads and increasing engagement with consumers through social media.
Last 24 hours being more traumatic for Nestle than ever before-the
Delhi government has found samples of Maggi noodles to contain monosodium glutamate (MSG) and more than the permitted quantity of lead. It has decided to begin proceedings against the company for selling an unsafe product as well as 'misbranding'
The Kerala government has banned the sale of the product through state-owned outlets. Haryana has ordered laboratory testing of samples.
The
Food Safety and Standards Authority of India (FSSAI),
the national food regulator, is examining samples of Maggi noodles and is expected to report results in a few days.
As Maggi is undergoing a horrific phase, other food companies are preparing how to cope with this issue, which has once again brought food safety to the centre stage.
"You never know which
food inspector will come next and examine our products in which part of the country. We have to be best prepared for something like this," the CEO of a multinational food giant told the ET on condition of anonymity. Some companies have already swung into action.
PepsiCo, which makes the Pepsi and Mountain Dew fizzy drinks and Kurkure snacks, has stepped up communication with consumers through packaging and social media, said an executive.
Mayank Shah, group product
manager at the country's biggest biscuit maker
Parle Products, said the episode served as a warning for all food makers. "With new guidelines on food safety expected, we are planning to engage with consumers a lot more and talk to them consistently through ads and declarations, instead of waiting for something like this to happen. It's critical to keep communication with key stakeholders constant and transparent," he said.
There have been times in the past when controversies relating to food safety have taken a toll on the industry. Soft drinks sale fell by almost 70-80% after pesticide residue was found in them in the mid-2000s. Similarly, sales of Cadbury chocolates dropped by more than half over contamination issues in 2003.
The
marketing head of a global foods firm, who didn't want to be named, told the ET, there was an urgent need to be better prepared. "We are preparing point-of-sale material to be supplied at stores, where we will have banners declaring the ingredients in our products. We plan to insert one liners in our ads, talking about safety and health, and not just taste," he said.
Yum Brand's general manager
Unnat Verma told the financial daily, his restaurant chains will engage more closely with consumers on the issue of product safety. Yum Brands owns Pizza Hut and Taco Bell.
Retail trade executives have confirmed that sales of Maggi noodles dropped 60-70% in the past two weeks. "Consumer offtake has been severely impacted. Maggi noodles is barely moving off shelves. Promotions don't seem to be working too," said one.
(Image:
India Times)
