Bournvita Reclassification: Regulatory Scrutiny & Industry Trends
Ministry Directive: Reclassification of Bournvita
The Ministry of Commerce and Industry has mandated e-commerce platforms to reclassify beverages like Bournvita, removing them from the ‘health drinks’ category due to the absence of such classification in India’s food legislation. This directive follows an inquiry by the National Commission for Protection of Child Rights (NCPCR) and directives from the Food Safety and Standards Authority of India (FSSAI), emphasizing that dairy- and malt-based beverages should not be marketed as health drinks.
Legal Turmoil: Bournvita's Sugar Content Controversy
The move comes in the wake of a dispute involving Cadbury Bournvita, a popular malted drink in India, over allegations of excessive sugar content made by a social media influencer. Mondelez India, the brand owner, resorted to legal action, resulting in the removal of the contentious video.
Government Intervention: NCPCR's Demands
NCPCR demands an end to deceptive packaging and advertising practices, heightening concerns over misleading marketing tactics in the industry.
This latest governmental action reflects a trend seen in prior legal cases, such as the one involving Patanjali, which shed light on misleading consumer practices. Industry experts, including Santosh Desai of Futurebrands Consulting, perceive this as a part of the government’s intensified efforts to scrutinize deceptive advertising claims across various product categories.
Market Dynamics: Shift Towards Wellness
Furthermore, recent market analysis by Wazir Advisors has underscored a shift towards natural and chemical-free food choices, driven by the evolving lifestyles of consumers who are increasingly seeking functional foods to supplement their diets. The health and wellness food and beverage sector in India is forecasted to experience substantial growth, potentially reaching Rs 2,50,000 crore by 2026, with burgeoning interest not only in major urban centers but also in tier II cities.
Source: Inputs from various media Sources
