Maggi to lose over $250m following food safety ban

Maggi, a subsidiary of the Nestlé group, is set to lose over $250 million in brand value following a ban imposed by the Food Safety and Standards Authority of India (FSSAI).

Maggi will destroy $64 million worth of noodles in India which have been branded “unsafe and hazardous” after the FSSAI discovered “higher-than-allowed levels of lead” in some noodle packets.

Maggi’s brand was valued at $3 billion prior to the food safety ban, which ranked the noodle manufacturer as the 23rd most valuable food brand in the world. However, Brand Finance analysts have calculated that the $64 million loss of goods combined with a damaged brand, results in a reduced brand value of $2.8 billion.

Nestlé India has said the noodles in India are safe, but that they have decided to take the products off the shelf due to “an environment of confusion for the consumer”.

This, Nestlé believes, does not provide a conducive environment to have the product in the market, at this moment.

Speaking to the media, Paul Bulcke, Global Chief Executive, Nestlé said: “The trust of our consumers and the safety and quality of our products is our foremost priority everywhere in the world. Unfortunately, recent developments and growing concerns about the product have led to confusion for the consumer to such an extent that we have decided to take the product temporarily off the shelves, in spite the product being safe”.

Responding to the recent concerns around lead, Nestlé has conducted extensive, additional tests on over 1000 batches of MAGGI Noodles at its own accredited labs, complimented by tests on over 600 batches at external laboratories. All results indicate that MAGGI Noodles are safe and well within the regulatory limits established in India. Nestlé has shared these results with the authorities, as well as with the broader public online.

Nestlé has decided to challenge the high court whilst also raising “issues of interpretation” of India's food safety laws.

The Maggi Noodles Nestlé sells in Australia are made in Malaysia.


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