NEW DELHI: Food giant Nestle India is in the spotlight again over its widely-sold baby food, Cerelac. Global civil society organisations -- Public Eye and IBFAN (International Baby Food Action Network) have submitted a formal request to the Swiss State Secretariat for Economic Affairs (SECO), urging legal action against Nestle “unethical and unfair business practices’’ in low and middle income countries.
Charging the Swiss biggie of ``double standards’’, the NGOs had in April said that the company’s two best-selling baby food brands -- sold in developing countries including India, have a high content of added sugar, prohibited under WHO guidelines.
Nestlé’s misleading and aggressive marketing and its double standard over added sugar are unfair business practices that affect hundreds of thousands of people in lower-income countries, they added in a statement.
The cessation of unethical practices is important not only to protect children, but also the reputation of Nestlé's home country, they added.
Under the Swiss Unfair Competition Act, the federal government has a legal instrument to prevent unfair business practices by Swiss companies with negative consequences abroad if this is necessary for the "protection of the public interest". Notably, the Confederation is entitled to take legal action if "Switzerland’s reputation abroad is threatened’’.
The action, if it happens, could be the first ever such instance perhaps where a consumer firm is penalised for products sold in developing countries, industry experts say.
In low- and middle-income countries, Cerelac and Nido are promoted as healthy and "key to supporting young children’s development" but the products contain high content of added sugar. As against this, in its home country, Switzerland and other rich nations, the company sells such products without added sugar.
Early exposure to sugar increases the risk of numerous chronic diseases such as diabetes and cardiovascular maladies, which is why the World Health Organisation has banned it in baby foods.
The findings by Public Eye and IBFAN prompted enquiries by regulators in India, Nigeria and Bangladesh. In April, India’s food standards regulator, (FSSAI Food Safety and Standards Authority of India) collected samples of Nestle’s Cerelac baby cereal, following concerns raised by the Ministry of Consumer Affairs, Food and Public Distribution and the National Commission for Protection of Child Rights (NCPCR) regarding the high sugar content.
When contacted, a Nestlé India spokesperson said “We understand that the authorities
(FSSAI)
are conducting analysis of infant cereals and infant formulas sold by all companies in the country.”
Further, the Swiss firm maintained its commitment to compliance and highlighted a reduction in sugar content by up to 30% in its baby food products in India over the past five years.
In April, days after the issue became public, Nestle’s chairman and managing director Suresh Narayanan in a media interaction said its infant cereal brand Cerelac complies with local food norms, saying added sugars in the baby food are much lower than what India’s food regulator permits, and in compliance with Codex, the international food standards body.
The food giant controls 20% of the baby-food market, valued at nearly $70 billion. With over $2.5 billion in global sales in 2022, Cerelac and Nido are some of Nestlé’s best-selling baby-food brands in low- and middle-income countries.