Nestle India shares slip after reports suggest baby-food brands sold in India contain high levels of added sugar

Nestle share price: Shares of Maggi maker Nestle slipped over 3 per cent in Thursday's trade on BSE. The selling pressure can be attributed to reports suggesting that baby-food brands sold by global giant Nestle in India contain high levels of added sugar, while such products are sugar-free in the United Kingdom, Germany Switzerland, and other developed nations, an investigation by Public Eye, a Swiss organisation and the International Baby Food Action Network (IBFAN) has revealed.

At around 12:22 p.m., shares of Nestle India traded 3.46 per cent or Rs 88.2, lower at Rs 2458.95 apiece. The market capitalisation of the company at around the same time stood at Rs 2,36,936.8 crore. 

As per reports, findings showed that in India, all Nestle's Cerelac baby products contain an average of nearly three grams of sugar per serving. 

The same product is being sold with no added sugar in Germany and the UK, while in Ethiopia and Thailand, it contains nearly six grams, the study said. 

The report said that Nestle adds sugar to infant milk and cereal products in several countries which is a violation of international guidelines aimed at preventing obesity and chronic diseases. Violations were found only in Asian, African, and Latin American countries. However, a Nestle India Ltd spokesperson said the company has reduced the total amount of added sugars in its infant cereals portfolio by 30 per cent over the past five years and it continues to "review" and "reformulate" products to reduce them further. 

“Almost all the Cerelac infant cereals examined contain added sugar -- nearly four grams per serving on average, equal to roughly a sugar cube -- although they are targeted at babies from six months of age. The highest amount -- 7.3 grams per serving -- was detected in a product sold in the Philippines," the report said. 

Also Read: Nestle adds sugar to baby food sold in India but not in Europe

Nestle India share price: Past performance 

In a year, Nestle shares have lost over 18 per cent against Nifty50's rise of over 25 per cent. 

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