Background of Nestle, Time line & Facts of the case, Decision by court

1. CASE STUDY:
MAGGI NOODLES EXCESSIVE
LEAD 2015 (SAFETY
CONCERNS)
PRESENTED BY:
PRINSON RODRIGUES

2. MAGGI PUTS NESTLE IN AN ‘INSTANT’ SOUP

3. Background of Nestle…
• Nestlé, Swiss originated 140 years old multinational.
• Nestle India Limited (NIL) is the Indian subsidiary of the global FMCG
major, NestleSA.
• Nestle India Ltd. introduced Maggi Brand to the Indian markets in
1982.
• Maggi is an over 100 year old Nestlé brand.
• Nestle India Ltd. created an entirely new food category, instant
noodles in the Indian packaged food market.
• With an Employee strength of over 3000 and turnover of US$ 497
million in 2003.
• The company is acknowledged as the top Wealth Creators of India.

4. Time line of the case
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.
January 2015
The second sample is received by the referral laboratory in January 2015.
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.
5 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.

5. 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.
30 June 2015
The Bombay High Court allows Nestlé India to continue exporting Maggi noodles.
11 August 2015
The National Consumer Disputes Redressal Commission (NCDRC) files a class action
lawsuit against Nestlé India on behalf of Indian consumers.
It asks for close to USD 100 million (INR Rs 639.95 crore) in damages on grounds of
"unfair trade practices, sale of defective goods and sale of goods to the public by
selling Maggi Oats noodles without product approval.”
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.”

6. 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.
4 November 2015
All three NABL accredited laboratories - mandated by the Bombay High
Court – find samples of the newly manufactured Maggi noodles to be safe.
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.

7. Facts of the case
1. What is the controversy around Maggi?
In May 2015, Indian Food Safety Regulators from the State of Uttar
Pradesh have claimed that samples of Maggi 2 Minute Noodles were
found to contain traces of lead beyond permissible limits and added
monosodium glutamate. Then it got temporarily banned in UP.
2. What is MSG? Why is it added to food products? Is it harmful?
MSG, or monosodium glutamate is a type of amino-acid found naturally
in many agricultural products. It is often added artificially to packaged
food to enhance flavour.
While MSG is said to be harmful for health, there has been no conclusive
proof regarding the adverse effects of MSG.

8. 3. Does Maggi have lead too?
The test results showed that the samples of Maggi they tested contained
17 parts per million lead, whereas the permissible limit is 0.01ppm.
Exposure to more than permissible amounts of lead can affect several
functions of the body including the central nervous system, kidneys, and
the immune system.
4. What does Nestle have to say about this?
“We do not add MSG to our Maggi noodles sold in India and this is
stated on the concerned product. However, we use hydrolysed
groundnut protein, onion powder and wheat flour to make Maggi
noodles sold in India, which all contain glutamate. We believe that the
authorities’ tests may have detected glutamate, which occurs naturally in
many foods.”

9. 5. Are brand ambassadors culpable too?
Brand ambassadors and retailers who sold Maggi “with knowledge”
about their side effects would be “liable for action” if FSSAI identified
irregularities.
Amitabh Bachchan, Madhuri Dixit and Preity Zinta were also dragged in
this controversy because all three of them were Brand Ambassador of of
Maggi at some point of time. A court in Muzzafarpur Bihar ordered to file
an FIR against all three.

10. Debate
MAGGI NOODLES UNDER SCANNER: DOES INDIA
NEED MORE STRINGENT FOOD SAFETY RULES

11. - Credit
Google Images

12. Decision of the court
• The Bombay High Court overturns the government’s ban - “arbitrary”
and “that principles of natural justice were not followed.”
• Over the next six weeks, Maggi must have five samples of its noodles
tested by 3 accredited labs to prove the amount of lead is within
permissible limits. If the tests are in Nestle's favour, it can start selling
the noodles again.
• More than 2,700 samples of Maggi noodles have been tested by
laboratories in India and abroad, and each test confirmed the level of
lead to be "far below permissible limits".
• The government filed a law suit against Nestle India seeking Rs 640
crore.
• Rs 640 crore — claimed by the government will be deposited in
consumer welfare fund.