Nestle India declined by 3.25% to reach Rs 2,464.35 following news reports that the company added sugar to its Cerelac baby cereal in India, but not in its main European and UK markets.
In a joint investigation between Public Eye and International Baby Food Action Network (IBFAN) sent baby food samples in Asia, Latin America, and Africa from Nestle to a testing laboratory in Belgium. The study said that Nestle added the sugar equivalent to an average of 4 gram per sugar cube in wheat-based cereals, Cerelac. It is made for children aged between six months and two years.The same product is being sold with no added sugar in Germany and the UK, while in Ethiopia and Thailand, it contains nearly 6 grams, the study said.
The said finding raised concern about the FMCG majors adherence to international guidelines aimed at curbing obesity and chronic diseases.
Nestlis the world's largest food and beverage company. It manufactures internationally famous brand names such as Nescaf Maggi, Milkybar, Kit Kat, Bar-One, Milkmaid and Nestea.
The FMCG major's net profit increased 4.39% to Rs 655.61 crore on 8.07% rise in total revenue from operations to Rs 4,600.42 crore in Q4 CY23 over Q4 CY22. Total sales increased by 8.28% year on year to Rs 4,583.63 crore in the fourth quarter of 2023. During the quarter, domestic sales grew by 8.86%, while export sales fell and 5.59%.
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