Introduction
Nestle
Nestle S.A was
founded in 1867 in Geneva, Switzerland by Henri Nestle.
Founder –
Henri Nestle, Charles Page, George Page
Head quarters in Switzerland
3,39,000
employees
Nestle owns
2000 brands
Total equity
71.88 billion
Total assets
133.45 billion
Active in 194
countries with 447 processing units.
Basically the
company started to meet the need of milk during world war 1
Maggi is an
international brand of seasonings, instant soups and noodles
Maggi is first
introduced in 1872 in Switzerland by JULIUS MAGGI.
it is owned by
NESTLE company in 1947.
Entered India
in 1982 with it’s instant noodles formula(2-minute noodles).
Nestle S.A.
was formed in 1905 by merger of the Anglo-Swiss Milk Company and Farine Lactee
Henri Nestle, founded in 1866 by Henri Nestle.
NESTL IN INDIA
Nestle's India
started 1912
Nestle formed
a company in India, namely Nestle India Ltd, and set up its first factory in
1961 at Moga, Punjab.
Nestle India
started production in 1961 Moga Panjab.
Now it have 8
processing unit different state in India.
Nestle market
its products in 130 countries across the world.
Nestle sells
over a billon product everyday.
The
consideration nestle is good food, good health of consumer.
PRODUCTS OF NESTLE ?
Cereals
? Noodles ? Yogurt ? Coffee ? Water ? Other drinks ? Ice cream ? Infant food ?
Healthcare nutrition ? Seasoning ? Frozen food ? Baked good ? Pet care
MAGGI IN INDIA
Nestle
unleashed brand Maggi in india Almost 25 years ago in 1983 with launch of its
traditional 2 minutes noodles in its masala, tomato and chicken flavors,
followed by its curry flavor some years down the line.
Maggi’s market share:
Noodles
consumption in India
According
to the World Instant Noodles Association, India consumed 5,340 million cups or
bags of instant noodles through 2016.
World
Market Share Maggi 94% Top Ramen 4% Other
COMPETITION
During
1990s, the sales of Maggi noodles declined, and this was attributed partly to
the growing popularity of Top Ramen.
Maggi
is also facing competition with the Hakka noodles.
VARIOUS TAG LINES OF MAGGI
NIL positioned
Maggi as a ‘fun’ food for kids which mother could prepare easily.
Tag lines of
Maggi from their various ads: -
Mummy, bhookh
lagi hai’ (Mom, I’m hungry).
Bas 2-minute,’
(only 2 minutes)
Fast to Cook
Good to Eat’
Taste bhi,
Health bhi’
ABOUT THE CASE
Case
registered under
IPC
SECTION 270 (malignant act likely to spread infection of disease dangerous to
life)
IPC
SECTION 273 (sale of noxious food or drink) ? IPC SECTION 276 ( sale of drug as
a different drug or preparation)
IPC
SECTION 420 (cheating and dishonesty)
Under
these sections FSSAI ordered to recall the product.
In May 2015, India witnessed a nation wide
food scare, one of kind in the history. •
Since
Maggi says ‘No Added MSG’ on the packet. Monosodium glutamate •
On
March 30, 2014, a Maggi sample was sent for test in Gorakhpur, Uttar Pradesh
and the lab analyst found samples of lead and MSG.
On
June 5, the Food Safety and Standards Authority of India (FSSAI) ordered Nestle
India to withdraw all nine variants of Maggi instant noodles from the market
terming them “unsafe and hazardous” for human consumption. ?
Maggi ban
started with the first phase of inspection in Barabanki, Uttar Pradesh, from
where the food inspector allocated a batch of 12 Maggi packets to the research
lab in Gorakhpur. After detection of some harmful chemicals, the batch was then
transferred to the Kolkata. ?
where the
presence of excess lead and MSG (monosodium glutamate) was confirmed.
NIL took the
samples for further tests to a central food laboratory in Kolkata (East Indian
city) where illegal levels of lead (at 17.2 ppm against the allowable limit of
2.5 ppm) were found. •
Lead to a
recall of Maggi products in the north Indian state of Uttar Pradesh in June
2015. •
Some popular
retailers also withdrew the stock from their shelves.
As the company
still was confident on their claim about MSG.
Four days
later on June 5, FSSAI had ordered NIL to withdraw all nine variants of Maggi
instant noodles from the market, terming them “unsafe and hazardous” for human
consumption
Allegations Misleading labeling information
Release of non standardized food product Presence of Lead above maximum limit
2.5ppm
In Nov 2017 at
shahjahanpur, UP administration reviled that ash contain is above the prescribe
limit.
Administration
decide to impose a fine of Rs 45 lakh on Nestle India.
And a fine of
Rs 17 lakh on Nestle distributors in the region.
Ash contain
both compounds with essential minerals (k, cal) and toxic materials (mercury)
It was
confirmed that 17.2 ppi of lead was contained in the Februrary 2014
manufactured batch of Maggi packets which was 8 times higher than the
permissible limit range of 0.01-2.50 ppi. Where in Delhi, the samples of Maggi
were detected with a lead level of 3.6.
MSG
increases the body MSG level by 20% which is harmful for humans especially
children.
It
is also challenged by Nestle India that out of the 1000 samples inspected of
the 12.5 crore Maggi packets, the found lead content on an average does not
exceed the prescribed level of lead content.
Health hazards due to excessive
Lead:
Children:
Learning
disabilities resulting in decreased intelligence (decreased IQ) Attention
deficit disorder Behavior issues Nervous system damage Speech and language
impairment Decreased muscle growth Decreased bone growth Kidney damage
Adults:
Increased chance of illness during pregnancy Harm to a fetus, including brain
damage or death. Fertility problems in both men and women High blood pressure
Digestive issues Nerve disorders Memory and concentration problems Muscle and
joint pain
EFFECT ON COMPANY •
LEGAL CASE
11 August 2015 • The National Consumer
Disputes Redressal Commission (NCDRC) files a class action lawsuit against
Nestlé India on behalf of Indian consumers.
FINE
It
asks for close to USD 100 million (INR Rs 639.95 corer) in damages on grounds
of "unfair trade practices, sale of defective goods and sale of goods to
the public.
A
district court of Muzaffarpur, Bihar directed police to register an FIR against
two nestle official and brand ambassadors.
India separately sued Nestle for $100m (£64m)
over "unfair trade practices".
LOSS IN MARKET SHARE
From
commanding 80% share of India’s noodles market, Maggi went down to zero in just a month.
The
Maggi fiasco had repercussions on the company as a whole, and NIL sustained its
first quarterly loss in 17 years, according to its quarterly report for the period
ending June 2015.
Its
top line for the quarter had fallen by 20% to Rs. 19.34 billion
An
Uphill journey begins Lost share about 17% instantly It had destroyed about
37000 tonnes of maggi noodles It had lost more than Rs 500 crore
Not
surprisingly investors panicked and sold the stock.
It share price fell nearly 13.5% or by Rs.941
in the fifteen days to June 10, 2015.
Nestle’s
share went down by upto 17%.
The
recall exercise of Maggi noodles has cost Nestle Rs.320 crores and another
Rs.1270 crores in brand loss.
OTHER LOSSES
NIL destroyed
Rs.3 billion worth of Maggi noodles products without going for any further
tests. •
Nestlé decided
to destroy more than £32million ($50million) worth of Maggi Noodles in India
after they were deemed unsafe by regulators
Ban on Maggi
incurred standalone loss of 64.40 crore rupees.
The company,
which has 80% of India's instant noodles market, has already destroyed 400
million packets of Maggi products
DECREASED SALES
5
point defeat Fall in sales 60% Nestle revenue dented 30% for maggi Consumer
confidence slumps Financials to take a beat Earning per share decrease
As
the flagship product went up in flames—38,000 tonnes, literally—Maggi-branded
jams, ketchups and beverages too took the heat.
MEASURES TAKEN
DESTORY EXISTING STOCK
While
legal proceedings are ongoing, Nestlé continues to comply with the FSSAI order
and destroys over 35,000 tones of the product
15 JUNE 2015
In light of growing consumer confusion, Nestlé India decides to
temporarily stop selling Maggi noodles in India until the situation with the
authorities is resolved.
COMMUNICATION:-
A statement on
their website said that “The quality and safety of our products are the top
priorities for our Company.
We have in
place strict food safety and quality controls at out Maggi factories…
We do not add
MSG to Maggi Noodles, and glutamate, if present, may come from naturally
occurring sources.
We are
surprised with the content supposedly found in the sample as we monitor the
lead content regularly as a part of the regulatory requirements.”
Nestlé
continues to engage in an active dialogue with customers on social media
channels Facebook and Twitter.
As well as
this the company created a FAQ page on the official Nestlé website to answer
all questions.
Nestlé uses
Twitter and Facebook to answer customers questions about the levels of MSG and
lead found in their noodles.
The
company continues to re-assure customers that the noodles are safe and that
they are a transparent company working closely with authorities in India to
resolve the issue.
As
well as this Nestlé explains the science behind the tests, what lead and MSG
are and gives an informative breakdown of the ingredients in their product.
On
June 1, 2015, Nestle held a press conference after testing 125 million packets
that the noodles are safe to eat.
Nestlé
continues to keep its customers up to date on the investigation into the safety
of Maggi noodles in India. On the official Maggi noodles India Facebook page,
Twitter and website, Nestlé states that extensive testing reveals no excess
lead in Maggi noodles.
The
scare was a huge blow to the company, which has been selling its Maggi products
for over three decades in India with 80% of the country’s instant noodle
market.
.
OTHER COUNTRIES EXAMPES AND TEST
CONDUCTED
Maggi
is popular in Pakistan, Nepal, Bangladesh and Sri Lanka but they are yet to act
on this.
Shortly
after the UK results were published, Canada also cleared Maggi noodles as safe.
MaggiIndia
makes an impressive effort to respond to every tweet from customers on this
issue with a pre-prepared statement explaining that lead occurs naturally in
soil and water
1st
June – Nestlé re-assures customers its noodles are safe
Tests
by food standards authorities in six countries – USA, Canada, UK, Australia,
New Zealand and Singapore – also found Indian-made Maggi noodles safe for
consumption.
13
August 2015 • The Bombay High Court overturns the government’s ban on Maggi
noodles, arguing that the move was “arbitrary” and “that principles of natural
justice were not followed.”
The
court rules that Nestlé India can bring the product back to the market if fresh
tests – conducted in three accredited laboratories on the existing samples and
subsequently on the freshly manufactured product– find the product safe.
bounce
back Make a balance between government and consumer Emotional touch to consumer
#miss_you_maggi
16 October 2015 • Test results from all three
laboratories mandated by the Bombay High Court show Maggi noodles to be safe,
with lead content well within the permissible limits. •
In compliance with the orders of the Bombay
High Court, Nestlé India commences manufacturing Maggi noodles and submits the
new batches for fresh tests to reconfirm they are safe for consumption. •
4 November 2015 • All three NABL (National
Accreditation Board for Testing and Calibration Laboratories) accredited
laboratories - mandated by the Bombay High Court – find samples of the newly
manufactured Maggi noodles to be safe for consumption, with lead content well
within permissible limits. •
9
November 2015 • Now that the orders of the Bombay High Court have been complied
with, Nestlé India has made Maggi noodles available for sale once again
Nestle
recalled it’s Maggi inventory, so that this issue doesn’t hamper the sales of
other Nestle products.
Before
recalling the entire stock they should have challenged the FSSAI results.
Nestle
was not sure about Maggi’s meeting standards, that’s why they took abrupt
decisions.
Alternatives •
Lead and mono
sodium glutamate is not using(other health product used)
Pricing and
include new product and quality increasing.
To check the
raw materials.
To check the
Maggi noodles every one , two month.
To maintain
the machines regularly.
Health hazards due to MSG: •
Severe
headache • Flushing • Sweating • Facial tightness • Allergic response • Chest
pains • Shortness of breath • Muscle weakness and numbness, • Heart
palpitations Tingling or burning in the mouth, around the face and in the limbs
REAL STORY OF THE MAGGI CASE
Initially,
Mr VK Pandey, Barabanki’s food safety inspector was being hailed as the man who
lead the entire testing and reporting.
In
several interviews, Pandey has described how his team collected Maggi samples
last year, sent it for tests and then notified Nestle over the excess lead and
MSG, and then sent the samples for further tests to the Central Food Laboratory
in Kolkata to confirm that Maggi was indeed dangerous for consumption.
Facts
However one of Pandey’s juniors in the same department, Mr Sanjay Singh has
claimed to be the one who first sent the samples for testing.
Sanjay,
who is a 1998 batch food inspector, has accused his boss of wrongly taking the
credit for work done by him.
Pandey, on the other hand, has acknowledged
Singh’s work but insisted that the action was taken under his intructions.
We
think it’s quite shameful that two officers are now taking claim for the same
expose, since it is clear that at least one of them is misrepresenting
TO CHECK THE MAGGI NOODLES
SAFTEY FOR MAGGI
Fresh
tests mandated by an Indian court on Nestle's popular Maggi noodles have found
them to be safe with levels of lead well below permissible limits, the company
said in a statement.
Nestle
had challenged a government ban on the noodles after some tests found lead
levels beyond statutory limits.
The
Swiss food multinational has always said its products are safe.
The tests had found all 90 samples, covering
six varieties, safe for consumption, the statement from Nestle India said.
The
company said it "will now commence manufacture and will start selling [the
noodles] only after the newly manufactured products are also cleared by the
designated three laboratories".
CHANGES HAPPENED AFTER THE CASE
NIL
India also appointed Suresh Narayanan (Narayanan) as its MD, replacing India
head Etienne Benet.
Narayanan
took charge from August 1, 2015, the first time in 17 years that an Indian was
at the helm of NIL.
In
late August 2015, NIL had come up with short video ads leveraging on nostalgia
and emotional quotient attached with Maggi instant noodles. •
In October 2015, Nestlé claimed that it had
cleared three lab tests mandated by a court in the western state of
Maharashtra, and would relaunch Maggi by November 2015. •
As
Maggi geared for its relaunch, Narayanan had several challenges ahead of him.
MAGGI
NOODLES COME BACK •
Test results from all three laboratories
mandated by the Bombay High Court show Maggi noodles to be safe, with lead
content well within the permissible limits. •
In
compliance with the orders of the Bombay High Court, we began manufacturing
Maggi noodles and submitted the new batches for testing as well.
All
three NABL (National Accreditation Board for Testing and Calibration
Laboratories) accredited laboratories have reconfirmed that Maggi noodles are
safe for consumption.
Now
that the orders of the Bombay High Court have been complied with, Nestlé India
has made Maggi noodles available for sale once again
The
company should maintain the previous taste what they were providing and should
also follow strict safety measures by taking consumers health into
consideration. ?
They
can also associate their brand with some loyal personalities, so that people
can trust on it and go for that again as before. ?
Packaging
should be changed, they should not mention “no added MSG”. ?
They
can sell “Maggi noodles” and “taste maker” individually. ?
They
can launch a new instant snack.
Since
the Maggi ban in 2015, Nestle has reworked its strategy and now plans to focus
on new product categories such as cereals, healthcare and skincare
It’s
June of 2016, a year after the safety crackdown.
At
the Centre, Nestle SA’s global headquarters in Switzerland’s picturesque Vevey,
the global company’s board and management are trying to finalize a three-year
strategy for the India market. Maggi, which returned to shelves in November,
has since reconquered 57% of the market, a far cry from its heydays, but a
major fightback still.
India’s
food minister has slammed the FSSIA (Food Safety and Standards Authority of
India) for creating an environment of fear in the food industry.
After
a difficult summer for Nestlé India the company finally receives some positive
news after an Indian government approved laboratory has found that Maggi
noodles do in fact comply with national food safety standards.
Meanwhile,
Maggi noodles have been cleared in many foreign countries; Nestlé also received
permission from the Bombay High Court to export Indian Maggi noodles.
TIME LINE •
March
2014 Authorities in the State of Uttar
Pradesh inform Nestlé India that MSG was detected in a sample of Maggi noodles
that carried a “No added MSG” claim on the pack. •
Nestlé
India states it does not add MSG to Maggi noodles and requests a second sample
to be sent to a referral government laboratory in Kolkata. •
January
2015 • The second sample is received by the referral laboratory in January
2015. •
It is analyzed from January 2015 to April 2015
– significantly after the product’s shelf-life.
April
2015 • The referral government laboratory in Kolkata says it has detected lead
levels above permissible limits and the presence of MSG in its sample of Maggi
noodles. •
Ensuing tests on Maggi noodles samples -
representing 165 million packets - by both Nestlé India’s own accredited
laboratories. •
11
June 2015 • Nestlé India files a legal petition with the Bombay High Court,
seeking a judicial review of this order.
As
the case progresses the company cites a number of arguments The FSSAI order was
passed without giving Nestlé a proper hearing as follows; •
The
government laboratories that tested Maggi noodles for lead – on behalf of the
FSSAI and some Indian state FDAs (food and drug administration) - were not
accredited for lead testing. • Tests by Nestlé and an independent accredited
laboratory have found Maggi noodles safe to eat
CFTRI
submitted analysis reports on MAGGI Noodles to the Hon’ble Supreme Court.
?CFTRI has clarified that the glutamic acid can be due to presence of
ingredients like tomatoes, Cheese, Hydrolyzed Plant Protein, Hydrolyzed
Vegetable Protein etc. ?It has further stated that there are no analytical
methods to distinguish between naturally present glutamic acid and additive MSG
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