Both the stocks - Nestle India and Zydus Wellness - came under pressure after the country’s food safety regulator issued notices to both the companies over “misleading claims” in certain products.
Shares of Nestle India on Thursday, October 21, fell around 3.7 percent, hitting their lowest levels in over the past six months at Rs 1187.10 while Zydus Wellness shares tumbled over 3 percent to plunge below their six-month of Rs 477.10. Both the stocks came under pressure after the country’s food safety regulator issued notices to both the companies over “misleading claims” in certain products and asked the companies to provide scientific proof to support their advertisements.
Nestle India share price today At the time of writing the report, Nestle India shares were trading at Rs 1,187.20, down 3 percent or Rs 36.70 from the previous closing of Rs 1,223.90, on the NSE. The stock opened at Rs 1,210 and fell to touch a low of Rs 1184. The stock was also the top loser on the Nifty FMCG, which was down around 2 percent at 42,910, at around 12.15 pm. Zydus Wellness share price today
Zydus Wellness shares were trading at Rs 476.20, down 3.21 percent or Rs 15.80 from the previous day close of Rs 492, at around 3.15 pm on the NSE. The stock opened at Rs 486.05 and plunged to touch a low of Rs 475.10. FSSAI action on Nestle India, Zydus On Wednesday, Food Safety and Standards Authority of India (FSSAI) said it had issued notices to Nestlé India over claims and promotional material for two products, Lactogen Pro 1 Powder and Nan Excella Pro Stage 1.
It also said that it had issued a notice to Zydus Wellness Products Ltd over claims made for its Complan product. In the notice issued for Lactogen Pro 1 powder, FSSAI said the company has claimed, in its labelling and advertisement material, that the product "contains Whey Protein, which is a part of milk protein that is easy to digest". FSSAI has asked Nestle to furnish scientific substantiation for the claim regarding whey protein being easy to digest.
The company has been directed to submit the requisite documents and supporting evidence for the claim within the stipulated period. In the product Nan Excella Pro Stage 1, the FSSAI said that the claim "5 HMOs help support the normal immune system" was considered to imply that the product is suitable for supporting the immune system. "The claim was considered non-compliant with provisions prohibiting claims relating to the prevention, alleviation, treatment or cure of any disease, disorder or particular physiological condition, unless specifically permitted under applicable regulations," the regulator said.
That apart, the FSSAI said the claim "contains whey protein" was observed on the product packaging/advertising material. The FSSAI has sought scientific substantiation to support the claim. Nestle India has been directed to explain why action should not be initiated under the FSS Act, 2006. In the case of Zydus Wellness' Complan, FSSAI said the product label displays images of two children and claims include "2X Faster Growth", "Supports Concentration and Memory" and "Pro Immunity+ 34 Vital Nutrients".
The claims were found to be in violation of the FSS (Advertising and Claims) Regulations, 2018. The regulator has asked Zydus to provide scientific justification for such claims. The advertisement claim "growth comes in 4 flavors" was found to violate the provisions of the FSS (Advertising and Claims) Regulations, 2018. Zydus has been directed to show cause within the stipulated period as to why action should not be taken against the company, the regulator said.
Nestle India’s response on FSSAI action Nestle India, meanwhile, said it has submitted a detailed response to the food regulator over the product labelling claim concerning its infant nutrition product Lactogen Pro 1. “FSSAI's recent post reiterates the points raised in its earlier post of 18 September regarding product labels. We have already submitted our detailed response to FSSAI on this matter,” a Nestle India spokesperson said, as quoted by news agency ANI.
