By Euro Weekly News Media • 17 June 2015 • 9:00
THE global food giant Nestle – a popular and trusted brand throughout Spain – is facing major losses in India due to a recall of their line of Maggi instant noodles. India’s food safety regulator banned the brand after laboratory tests found unacceptable levels of lead in the noodles, ruling them “unsafe and hazardous.”Nestle contends that the noodles are safe to eat and has challenged the ban, although they did go ahead and pull the product from shelves, just hours before the ban became official.The company is taking a serious financial hit from the ban, which has already cost them more than €50 million in lost revenue, not to mention the additional costs of transport and destruction of the product.The lead scare impacted Nestle India stocks as well, slipping almost three per cent after the ban. The recall is a serious blow to the company, which has enjoyed a near monopoly of the Indian instant noodle market for the last three decades.The company has asked the Food Safety and Standards Authority of India (FSSAI) to provide them with a report of the lab results but said they still have not received it. According to Nestle, they tested the product as well, finding lead levels to be within permissible standards. The Bombay High Court is set to review the case on June 30.
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