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Thursday, October 17, 2024

Nestlé introduces zero-sugar Cerelac amid allegations

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Nestlé addressed claims of added sugar in Cerelac for Indian markets by launching zero refined sugar variants on Thursday, October 17. The cereal range now has 21 variants, 14 of which are refined sugar-free, the FMCG giant announced in a filing.

Nestlé launches 14 variant of zero-sugar Cerelac

Of the 14 no refined sugar variants, seven will be introduced to Indian markets by the end of November 2024. The remaining seven will be available in the following weeks, the Swiss company announced.

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According to ET Retail, Suresh Narayanan, Chairman and Managing Director of Nestlé India, announced, “I am delighted to inform you that we have achieved our ambition of introducing CERELAC variants with no refined sugar. This initiative began three years ago and has culminated this year with the launch of the new CERELAC variants.”

In its Q2 exchange filing, the company further announced that Cerelac marked its 50th anniversary in September 2024.

Nestle reports strong double-digit growth past seven quarters

With strong double-digit growth in e-commerce, Nestlé reported the highest in the past seven quarters, contributing 8.3% to local sales. The growth, up by 38%, was driven by Kitkat, Nescafe, Maggi, and Milkmaid brands, the company said.

Earlier this year, Nestlé came under fire for allegedly supplying baby food, including Cerelac, with added sugar to ‘developing nations’, while their products in Europe and the UK did not contain added sugar. The issue caught attention when “Public Eye,” a Swiss investigative organisation, and IBFAN (International Baby Food Action Network) sent samples of Nestlé’s baby food products available in the market in Asia, Africa, and Latin America to a Belgian lab for examination.

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Nestlé’s ‘Double Standards’: Criticised for Unethical Practices

Notably, Nestlé was accused of ‘double standards’, and Public Eye formally asked Swiss authorities to take legal action over “unethical and unfair business practices” in low- and middle-income countries. Shortly after the complaint, Suresh Narayanan asserted that Cerelac sticks to local food regulations.

However, after the controversy, the Food Safety and Standards Authority of India (FSSAI) launched an inquiry into the sugar content in Cerelac and asked Nestlé for an explanation. Chairman Suresh said Cerelac contains about half of the sugar allowed by FSSAI.

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