There’s a huge confusion over Maggi. This is mainly due to the huge disparity between the official claims by India’s food regulator FSSAI and Nestlé.
Devindar Sharma, Food and Trade Policy Analyst agrees. “Nestlé should demonstrate Maggi is safe. If that doesn’t happen, it would send out a wrong message that FSSAI can let the big fish get away”, he says.
Nestlé’s website claims the brand has decided to take its noodles off the shelves in spite of it being safe. The company’s latest press release reads, “MAGGI Noodles are completely safe and have been trusted in India for over 30 years.”
While India’s statutory food safety and standards agency FSSAI released an official statement confirming the presence of excess Lead, misleading labeling of ‘No added MSG’, and a ‘non-standardized food product’: Maggi Oats Masala Noodles.
The brawl’s heating up with government officials, NGOs and the media fuelling the fire.
So what’s the way forward when India’s largest noodles brand gets banned?
“The company shouldn’t be in the denial mode. The more they deny the more damage it’ll beget. The brand should rework the product to make it fully compliant. It can then initiate a strong ad campaign to convince customers. It is undoubtedly a challenge”, Arvind Singhal, Chairman at Management Consulting firm Technopak says.
Speaking of consumer skepticism and strong ad campaigns, one can’t help but reflect on the 2003-2007 Pesticide Controversy Cola companies faced, and the ads they floated.
Coca Cola employed brand Ambassador Aamir Khan:
While in a rare move Pepsi Co. India’s then Chairman Rajeev Bakshi debuted on TV:
Will the hue and cry over Maggi kill the instant noodles market in India? Some believe other companies may suffer losses as an aftermath of the Maggi ban.
Industry experts beg to differ.
“There might be a short term dip of 1 or 2 yrs on the balance sheet, then the markets would bounce. The brands are powerful and the products well entrenched”, Singhal observes.
When asked the same, the ITC spokesperson remarked, “It is too early to gauge the impact on the industry as a whole."
Image credit: indiansharemarket and peggywright