The shares of Nestlé tumbled by over 3 per cent at the end of a torrid day of trading and investor angst over reports that the Swiss processed foods-to-confectionery giant had sold baby food products in the country containing elevated levels of sugar.
A report based on findings by a Swiss NGO, Public Eye and International Baby Food Action Network (IBFAN), claimed that Nestle had sold baby products with high sugar content in less developed South Asian countries, including India, apart from African and Latin American nations.
The Nestle stock fell by 3.31 per cent to end at Rs 2,462.75 on the BSE after tanking 5.40 per cent to a low of Rs 2,409.55.
On the NSE, the Nestle India share ended with losses of 2.94 per cent at Rs 2,471.
The selling pressure triggered a slide in the company’s market capitalisation which shrank by Rs 8,137.49 crore to Rs 2,37,447.80 crore.
Reacting to the report, Nestle India said: “Over the past five years, we have already reduced added sugars by up to 30 per cent, depending on the variant. We regularly review our portfolio and continue to innovate and reformulate our products to further reduce the level of added sugars, without compromising on nutrition, quality, safety, and taste,” it added.
“Nestlé India is committed to delivering the best nutrition to our consumers, which we have been doing for over 100 years and would always maintain highest standards of nutrition, quality and safety in our products,” it said.
The company said its infant cereal products were manufactured to ensure the appropriate delivery of nutritional requirements such as protein, carbohydrates, vitamins, minerals and iron for early childhood.
“We never compromise on the nutritional quality... Compliance is an essential characteristic of the company... We also ensure that our products manufactured in India are in full and strict compliance with CODEX standards (a commission established by WHO and FAO) and local specifications (as required) pertaining to the requirements for all nutrients including added sugars,” the company said.
