Nestle India shares fell to ₹1,187.10 after FSSAI notices over product claims

Nestle India shares fell around 3.7% to ₹1,187.10 on Thursday, October 22, after the Food Safety and Standards Authority of India issued notices over claims made for two products. The regulator asked Nestle India to submit supporting evidence and explain why action should not be initiated under the Food Safety and Standards Act, 2006. Zydus Wellness also received a notice over claims made for Complan.

FSSAI notices covered two Nestle India infant products

The Food Safety and Standards Authority of India said it had issued notices to Nestle India over claims and promotional material for Lactogen Pro 1 Powder and Nan Excella Pro Stage 1.

For Lactogen Pro 1, the regulator questioned the claim that the product “contains Whey Protein, which is a part of milk protein that is easy to digest”.

FSSAI also questioned the statement that five HMOs help support the normal immune system on Nan Excella Pro Stage 1. It sought substantiation for the separate claim that the product contains whey protein.

Zydus Wellness shares touched ₹475.10 on the NSE

Zydus Wellness shares opened at Rs 486.05 and touched a low of Rs 475.10 on the National Stock Exchange on Thursday, October 22. NSE data revealed this.

NSE data showed the shares trading at ₹476.20, down 3.21% or ₹15.80 from the previous close of ₹492, at around 3:15 p.m. India time.

Nestle India shares opened at ₹1,210

Nestle India shares opened at ₹1,210 and touched a session low of ₹1,184, NSE data showed. The ₹1,187.10 figure was reported as the stock’s six-month low during the session.

FSSAI sought explanations for claims made by both companies

The labeling of Nan Excella Pro Stage 1 for “immune-system” implies that this product is intended to support the immune system. The provision for this type of claim is not covered under the provisions for claims relating to the prevention, alleviation, treatment or cure of a disease, disorder or particular physiological condition unless permitted.

The Regulator has directed Nestle India to file requisite documents and evidence within the stipulated time frame.

FSSAI said Complan’s label displayed images of two children and carried the claims “2X Faster Growth”, “Supports Concentration and Memory” and “Pro Immunity+ 34 Vital Nutrients”.

The regulator said that Complan’s ads made those claims and the ad claim “growth comes in 4 flavors” are prohibited under the Food Safety and Standards (Advertising and Claims) Regulations, 2018.

Zydus Wellness Products Ltd has been asked by FSSAI to provide scientific reasoning and show cause within the stipulated time frame as to why action should not be taken against the Company.

Nestle India said it had already responded to FSSAI

A Nestle India spokesperson said the company had submitted a detailed response to FSSAI concerning the Lactogen Pro 1 product-labelling claim.

The spokesperson said FSSAI’s recent post repeated points raised in an earlier post dated September 18.