Nestle is an international food and beverage company headquartered in Switzerland. Maggi is Nestle's brand of seasonings and noodles that originated in Switzerland in the late 19th century. In 2015, tests in India found Maggi noodles to contain excessive lead and MSG, violating food safety standards. This led to a nationwide ban on Maggi noodles by food regulators. The controversy severely hurt Nestle's sales and brand image in India. Nestle faced legal cases and spent over 500 crore rupees recalling and destroying products. It took steps like reformulating recipes and social media campaigns to regain consumer trust over time.

1. Presented by:
Nirmal Singh Parmar
Pulkit Tyagi

2. About Nestle
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.
Headquarter : Vevey, Switzerland.
Active in 194 countries with 447 processing units.
Nestle India started production in 1961 Moga Panjab.
Now it have 8 processing unit different state in India.

3. About Maggi
 Maggi is an international brand of seasonings, instant
soups and noodles.
 Originated in Switzerland in late 19th century.
 Maggi Company was acquired by Nestle in 1947.

4. What is controversy
UP-FDA
Officer in
Gorakhpur
lab.
MSG
Repeat test
at the
Central Food
Lab kolkata.
17.2ppm
UP-FDA
filled
complain in
court
Food
minister
Directed to
FSSAI
FSSAI
conduct
nation wise
test

5. Its revealed

6. Allegations
Misleading
labeling
information
Release of non
standardized food
product
Presence of
Lead above
maximum
limit 2.5ppm

7. 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.

8. Nestle’s reaction
Used
hydrolyzed
groundnut
protein
Onion
powder
Wheat
flour

9. 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

10. 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

11. Sales profile

12. Stock performance

13. 4 mistakes which Nestle made
Over confidant
It failed to think
two step ahead
It overlooked
context
It communicate
but did’t engage

14. What about brand ambassadors
 A district court of Muzaffarpur, Bihar directed police
to register an FIR against two nestle official and brand
ambassadors.

15. How its bounce back
Make a balance
between
government and
consumer
Emotional touch to
consumer
#miss_you_maggi

16. Recent cases
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)

17. Recent CFTRI reports
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.

18. Recent Nestle’s report

19. Recent maggi market share

20. References
 http://www.thehindu.com/business/Industry/maggis-
battle-to-regain-consumer-trust/article23286942.ece
 https://www.nestle.in/aboutus/ask-
nestle/answers/maggi-noodles-india-latest-test-
results
 https://www.nestle.in/aboutus/ask-
nestle/answers/maggi-noodles-india-latest-test-
results
 https://www.businesstoday.in/current/corporate/mag
gi-samples-fail-lab-test-nestle-distributers-fined-rs-
62-lakh-fsda-fssai/story/264964.html

21. References
 http://fortune.com/nestle-maggi-noodle-crisis/
 https://www.youtube.com/watch?v=BNJhSgc5TPA
 https://www.youtube.com/watch?v=tdY0jGjNTjs
 http://www.digitaltrainingacademy.com/casestudies/2
015/07/crisis_management_case_study_nestles_m

22. Thank-you

23. Any question