FSSAI Action Against Nestle India: Infant Nutrition Products Under Scanner; Shares Fall 2%

The Food Safety and Standards Authority of India (FSSAI) has initiated legal proceedings against Nestle India over alleged non-compliances under the Food Safety and Standards Act (FSS Act), putting three infant nutrition products under scrutiny.

The regulatory action covers Infant Nutrition, NAN Excella and Lactogen. Following the development, shares of Nestle India fell more than 2% on September 18.

FSSAI said it has filed three separate adjudication cases against the FMCG company in connection with the three products.

The regulator said it examined Nestle India’s infant nutrition products and promotional material available on e-commerce platforms. During the review, certain promotional claims were found to be in violation of applicable regulations.

“In NAN Excella Pro Stage 1, claims relating to “5 HMOs” and “Whey Protein” were observed, while in Lactogen Pro 1, a claim relating to “Whey Protein” being easy to digest was observed. Accordingly, clarifications were sought from M/s Nestlé India Limited regarding the above claims. Both products were found to be in contravention of Regulation 4(2) of the FSS (Foods for Infant Nutrition) Regulations, 2020, which restricts promotional claims/material intended to increase the saleability of infant foods, and Section 3 of the IMS Act, 1992, which prohibits their advertisement and promotion,” said FSSAI in a statement.

Separately, laboratory testing of a sample of follow-up formula manufactured by Nestle India found its Biotin content below the prescribed requirement.

FSSAI said the sample was subsequently sent for re-analysis. The referral laboratory also found the product to be non-conforming with the Biotin requirement prescribed under the FSS (Foods for Infant Nutrition) Regulations, 2020.

“FSSAI has filed three separate adjudication cases against Nestle India in respect of the three products,” the regulator said.

The action is part of FSSAI’s ongoing food-safety enforcement measures, the regulator added.

At 1:30 pm on September 18, shares of Nestle India were trading 2.3% lower at Rs 1,336 apiece on the NSE.