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Maggi banned
Introduction
 Nestle S.A was founded in 1867 in Geneva, Switzerland by Henri
Nestle
 The company was started to meet the need of milk during world
war 1.
 Maggi was first introduced in 1872 in Switzerland by Julius
Maggi.
 Later it was owned by nestle company in 1947.
 Entered India in 1982 with its instant noodles formula [2-minute
noodles].
 Nestle formed a company in India namely Nestle India ltd in
1912
 1st factory in 1961 at Moga, Punjab
Some facts about nestle
 The first product sold by the company was baby food:
Henri Nestlé’s Infant Cereal
 Nestlé is one of the main shareholders of L’Oreal which is,
in case you forgot, the biggest cosmetics company in the
world.
 Even more impressive is the fact that 29 of those brands
generate annual sales of more than $1 billion. They
include Nespresso, Smarties, Nesquik and Kit Kat.
 Nestle is the worlds largest food company in terms of
revenue
 Nestle owns more than 2000 brands under its umbrella
CSR policy of nestle India
Nutrition food
 water and sanitation
rural development
Collaboration with universities, NGO ,external
agency
Its one of the leading company contributing to
CSR with ITC, DABUR, HUL, GODREJ ETC
Effects of lead poisoning in children
 The Centers for Disease Control and Prevention (CDC) based
in the US states that a blood lead level of 0.05 ppm or above
is a cause for concern in children.
 Even at low levels, lead can cause harm and is associated
with:
 Learning disabilities
 Speech and language impairment
 Decreased muscle growth
 Decreased bone growth
 Kidney damage
 High levels of lead are life threatening and can cause
seizures, unconsciousness, and death.
Turn of events
MARCH 2014
 Detection of MSG in Maggi sample where “no added msg” claim on the
pack
 On this nestle India stated that the test is not reliable and a second sample
test to be sent to a referral government laboratory in Kolkata
January 2015
 The second sample is received by the referral laboratory
 It was analyzed significantly from January 2015- April 2015
April 2015
 Kolkata lab had found not only presence of msg but lead above
permissible limits in the samples
11June 2015
 Nestle India files a petition with Bombay high court seeking a judicial review on the case
the following points
 The labs which tested lead on behalf of FSSAI (The Food Safety and Standards Authority of
India) and some Indian state FDA (Food and drug administration) were not accredited for
lead testing
 Test by in house nestle and an independent accredited lab have found Maggi safe to eat
 Test by food standard authorities in six countries USA, Canada, Australia, New Zealand,
and Singapore found Indian made Maggie noodles safe for consumption
 But while all this going on Maggi continues to comply with FSSAI’s order to destroy over
35000 tones of the product
15June 2015
 Nestle India decides to stop selling noodles in Indian market
11 august 2015
 The national consumer disputes redressal commission (NDRC) files a class action
lawsuit against nestle India on behalf of consumers
 It ask for USD 100 million ( Rs 639.95 crore) in damages on ground of “unfair
practice” “sale of defective goods and sale of goods to the public”
13 august 2015
 The Bombay high court overturns the government ban on noodles arguing the
move was arbitrary and that the principle of natural justice were not followed
 Allowing nestle to sell the product if passed fresh test in three laboratory listed by
the court on existing and fresh lot produced
16 October 2015
Test result from three lab NABL ( National Accreditation
Board for testing and Calibration Laboratories
by the Bombay high court were passed by Maggi
with lead within the permissible limit.
New fresh production was started
4 November 2015
All fresh slot of Maggie noodles were passed by the
laboratories
9 November 2015
Maggi was back in stores
Test results earlier (Up and Kolkata)
Tests performed by food safety authorities in Uttar
Pradesh
showed that samples contained 17.2 parts per million
(ppm) of lead
Allowable limits which range between 0.01 and 2.5
ppm
Testing controversies
 Monosodium glutamate (MSG): Testing found some MSG in Maggi noodles. The
packet stated "No added MSG"; however, MSG naturally occurs in hydrolyzed
peanut protein, onion powder and wheat flour.
 Maggi offered to remove the words "No added MSG" from the package to
overcome the objection.
 Lead: Maggi noodles include flavoring packets named "Tastemaker" which is
intended to dissolve in water during cooking.
 Maggi insisted that testing should be done on the product as it is eaten
Maggi instant noodles position
 Indian market share60% after ban ( before ban 73%)
 Share price dropped by 23% in a weeks time during the ban
 This was a result of panic selling of stocks.
Ethical issues
 It took so long after the 1st detection of defect in a brand which has 73% of share
in Indian instant noodles market
 Bombay high court mandated three labs where Maggi passed the test where as
other labs test where failing
 Nestle on social media kept on defending its product but on the other hand it
destroyed a huge amount of product inventory around 400 million packets
 A criminal case was filed on brand ambassador of Maggi instant noodles i.e.
Amitabh Bachan and Madhuri Dixit of the product by Sudhir kumar ohja where he
consumed Maggi which caused health issues.
 Further on this case government body FSSAI stated “anyone who is a party to a
misleading advertisement or its publication can be fined up to Rs 10lakhs”
Alternatives
 Government should concentrate more on regulation by amending the act as new
batch samples must be tested by a certified laboratory.
 Company must inculcate integrity and follow a proper code of ethics from the top
level management
 Necessary steps to implement above code of conduct within the employees of
organization
 Testing of raw material by the food regulatory authorities of india
Any questions…?
Thank you

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Maggi banned

  • 2. Introduction  Nestle S.A was founded in 1867 in Geneva, Switzerland by Henri Nestle  The company was started to meet the need of milk during world war 1.  Maggi was first introduced in 1872 in Switzerland by Julius Maggi.  Later it was owned by nestle company in 1947.  Entered India in 1982 with its instant noodles formula [2-minute noodles].  Nestle formed a company in India namely Nestle India ltd in 1912  1st factory in 1961 at Moga, Punjab
  • 3. Some facts about nestle  The first product sold by the company was baby food: Henri Nestlé’s Infant Cereal  Nestlé is one of the main shareholders of L’Oreal which is, in case you forgot, the biggest cosmetics company in the world.  Even more impressive is the fact that 29 of those brands generate annual sales of more than $1 billion. They include Nespresso, Smarties, Nesquik and Kit Kat.  Nestle is the worlds largest food company in terms of revenue  Nestle owns more than 2000 brands under its umbrella
  • 4. CSR policy of nestle India Nutrition food  water and sanitation rural development Collaboration with universities, NGO ,external agency Its one of the leading company contributing to CSR with ITC, DABUR, HUL, GODREJ ETC
  • 5. Effects of lead poisoning in children  The Centers for Disease Control and Prevention (CDC) based in the US states that a blood lead level of 0.05 ppm or above is a cause for concern in children.  Even at low levels, lead can cause harm and is associated with:  Learning disabilities  Speech and language impairment  Decreased muscle growth  Decreased bone growth  Kidney damage  High levels of lead are life threatening and can cause seizures, unconsciousness, and death.
  • 6. Turn of events MARCH 2014  Detection of MSG in Maggi sample where “no added msg” claim on the pack  On this nestle India stated that the test is not reliable and a second sample test to be sent to a referral government laboratory in Kolkata January 2015  The second sample is received by the referral laboratory  It was analyzed significantly from January 2015- April 2015 April 2015  Kolkata lab had found not only presence of msg but lead above permissible limits in the samples
  • 7. 11June 2015  Nestle India files a petition with Bombay high court seeking a judicial review on the case the following points  The labs which tested lead on behalf of FSSAI (The Food Safety and Standards Authority of India) and some Indian state FDA (Food and drug administration) were not accredited for lead testing  Test by in house nestle and an independent accredited lab have found Maggi safe to eat  Test by food standard authorities in six countries USA, Canada, Australia, New Zealand, and Singapore found Indian made Maggie noodles safe for consumption  But while all this going on Maggi continues to comply with FSSAI’s order to destroy over 35000 tones of the product 15June 2015  Nestle India decides to stop selling noodles in Indian market
  • 8. 11 august 2015  The national consumer disputes redressal commission (NDRC) files a class action lawsuit against nestle India on behalf of consumers  It ask for USD 100 million ( Rs 639.95 crore) in damages on ground of “unfair practice” “sale of defective goods and sale of goods to the public” 13 august 2015  The Bombay high court overturns the government ban on noodles arguing the move was arbitrary and that the principle of natural justice were not followed  Allowing nestle to sell the product if passed fresh test in three laboratory listed by the court on existing and fresh lot produced
  • 9. 16 October 2015 Test result from three lab NABL ( National Accreditation Board for testing and Calibration Laboratories by the Bombay high court were passed by Maggi with lead within the permissible limit. New fresh production was started 4 November 2015 All fresh slot of Maggie noodles were passed by the laboratories 9 November 2015 Maggi was back in stores
  • 10. Test results earlier (Up and Kolkata) Tests performed by food safety authorities in Uttar Pradesh showed that samples contained 17.2 parts per million (ppm) of lead Allowable limits which range between 0.01 and 2.5 ppm
  • 11. Testing controversies  Monosodium glutamate (MSG): Testing found some MSG in Maggi noodles. The packet stated "No added MSG"; however, MSG naturally occurs in hydrolyzed peanut protein, onion powder and wheat flour.  Maggi offered to remove the words "No added MSG" from the package to overcome the objection.  Lead: Maggi noodles include flavoring packets named "Tastemaker" which is intended to dissolve in water during cooking.  Maggi insisted that testing should be done on the product as it is eaten
  • 12. Maggi instant noodles position  Indian market share60% after ban ( before ban 73%)  Share price dropped by 23% in a weeks time during the ban  This was a result of panic selling of stocks.
  • 13.
  • 14.
  • 15.
  • 16. Ethical issues  It took so long after the 1st detection of defect in a brand which has 73% of share in Indian instant noodles market  Bombay high court mandated three labs where Maggi passed the test where as other labs test where failing  Nestle on social media kept on defending its product but on the other hand it destroyed a huge amount of product inventory around 400 million packets  A criminal case was filed on brand ambassador of Maggi instant noodles i.e. Amitabh Bachan and Madhuri Dixit of the product by Sudhir kumar ohja where he consumed Maggi which caused health issues.  Further on this case government body FSSAI stated “anyone who is a party to a misleading advertisement or its publication can be fined up to Rs 10lakhs”
  • 17. Alternatives  Government should concentrate more on regulation by amending the act as new batch samples must be tested by a certified laboratory.  Company must inculcate integrity and follow a proper code of ethics from the top level management  Necessary steps to implement above code of conduct within the employees of organization  Testing of raw material by the food regulatory authorities of india