Nestle Tosses Away $50 Mln Worth Of Maggi Noodles In Lead Scare
Nestle India Limited, the Indian arm of Swiss consumer foods giant Nestle SA (NSRGY.PK, NSTR.L), said it is destroying its Maggi noodles worth $50 million, after the country's central food safety regulator Food safety and Standards Authority of India or FSSAI said it is unsafe and hazardous for human consumption.
Tests conducted by several states in India recorded higher levels of lead and monosodium glutamate or MSG in Maggi noodles.
At the same time, Nestle's global Chief Executive Officer Paul Bulcke claimed the brand was safe for consumption and the company maintains same standards of quality all over the world. Bulcke said product quality and safety are of paramount priority for the company, and the company does not add MSG.
Maggi "two minute" noodles has been present in the Indian market for the last 30 years and has been a major revenue contributor to Nestle in India.
Nestle, which has 80 percent of India's instant noodles market, had moved the Bombay High Court against a ban imposed by the regulator, which was turned down by the court. The company insists the noodles are safe, but decided to withdraw it from the market.
In a statement, Nestle said the estimated sales value of the stock in the market, including those with its trade partners, is around 2.1 billion Indian rupee. In addition, there were Maggi noodles and related materials in factories and distribution centers when the withdrawal was announced and the estimated value of these is around 1.1 billion rupee.
According to Nestle, these are broad estimates as it is impossible to calculate the final figure while the withdrawal is taking place.
"There will be additional costs to take into account, for example bringing stock from the market, transporting the stock to the destruction points, destruction cost etc. The final figure will have to be confirmed at a later date," Nestle said in a statement.
Shares of Nestle India fell 2.8 percent Tuesday on the Bombay Stock Exchange to close at 5,782.85 rupee. (dpa)
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Topic world Food safety
Food safety is at the heart of the food and beverage industry. It ensures that the food we eat every day is not only nutritious, but also free of harmful contaminants. From field to plate, the industry monitors and regulates every step of the process with strict quality controls, advanced testing methods and continuous research.
Topic world Food safety
Food safety is at the heart of the food and beverage industry. It ensures that the food we eat every day is not only nutritious, but also free of harmful contaminants. From field to plate, the industry monitors and regulates every step of the process with strict quality controls, advanced testing methods and continuous research.
