Nestle India stock falls amid controversy | Why Nestle is falling | Nestle Cerelac news
Today, April 18, 2024, proved to be a disastrous day for the renowned FMCG company Nestle, marking its worst performance in three years! Nestle India's shares plummeted by as much as 5.4% on the BSE to Rs. 2,409.55.
Controversy Surrounding Nestle India's Popular Product:
The sharp decline in Nestle India's stock is attributed to a significant controversy surrounding one of its flagship products, Cerelac, which has long been favoured by many investors for its potential in long-term compounding.
Nestle India’s Baby Food Under Scrutiny:
The controversy revolves around Nestle India's infant food product, Cerelac, which came under scrutiny following revelations by Public Eye, a Swiss investigative organisation, and IBFAN (International Baby Food Action Network). Samples of Nestle's baby food items marketed in Asia, Africa, and Latin America were sent to a laboratory in Belgium for examination.
Report Exposes Nestle India's Practice of Adding Supplementary Sugar:
Tests revealed that Nestle India adds supplementary sugar to every variant of Cerelac baby cereal in India, averaging nearly 3 grams per portion.
Allegations of 'Double Standards' Against Nestle India:
Shocking findings suggest that Nestle practises this only in developing nations like India, not in its primary markets like Europe and the UK.
Added Sugar in Baby Food Raises Health Concerns:
The inclusion of added sugar in baby food raises serious health concerns, as early exposure to sugar in a child's diet can increase the risk of obesity and other related health issues later in life, as per WHO guidelines issued in 2022.
Efforts by Nestle India to Address the Issue:
Reports indicate that the Indian government has taken suo moto cognizance of the matter. Additionally, Nestle India claims to have reduced added sugar by up to 30% in its infant cereal portfolio over the last five years.
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