I love how Indian YouTubers are exposing Indian brands by doing in-vivo tests for sunscreen, adulteration, and harmful chemicals in dairy products and FMCG products. We can't trust FSSAI and the government for citizen welfare

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I love how Indian YouTubers are exposing Indian brands by doing in-vivo tests for sunscreen, adulteration, and harmful chemicals in dairy products and FMCG products. We can't trust FSSAI and the government for citizen welfare

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PM Modi said the public authority would sustain the rice appropriated to the poor by means of various plans. Head administrator Narendra Modi on Sunday declared that the public authority would strengthen the rice conveyed to the poor through various plans like Midday Meal in a bid to resolve the issue of ailing health. “Ailing […]
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New Post has been published on EveryUpdates :
New Post has been published on http://www.everyupdates.org/uncategorized/nestles-recovery-from-maggi-ban-to-be-long-haul-analysts/
Nestle's Recovery From Maggi Ban to be Long Haul - Analysts
New Delhi: Recovery may be a long haul for Nestle India with its flagship product Maggi noodles having been banned by food regulator FSSAI (Food Safety and Standards Authority of India) over safety concerns, according to analysts.
Not only the sales of noodles but other Maggi food items like pasta, ketchup and cooking aids would also be impacted with the company’s goodwill taking a major hit, they said.
Maggi is estimated to contribute 20-25 per cent to Nestle’s total sales, and its monthly sales are estimated to be around Rs 200 crore.
Nestle’s Recovery From Maggi Ban to be Long Haul: Analysts
Prabhudas Lilladher analysts Amnish Aggarwal and Gaurav Jogani in a research report said Nestle India recovery will “be a long haul” after the Maggi episode, which “will have far reaching consequences for not only Nestle but entire food processing and FMCG industry”.
“We expect sales impact on other Maggi branded items like pasta, ketchup and cooking aids also. Maggi brand accounts for 30 per cent of sales while Maggi Noodles account for nearly 23 per cent of company sales,” they said.
They further said, “Maggi Noodles is a cult brand which has created an $500 million category in the past 30 years and it would require considerable media spends and consumer interaction to bring the product back on rails.”
An analyst with a leading brokerage, who did not wish to be identified, said, “With the ban and subsequent withdrawal of the product from the market by Nestle, this controversy will not only have material impact but also has hurt goodwill of the company.”
An analyst with Motilal Oswal tracking the company said the controversy around the product has impacted the brand’s iconic status.
“Maggi Noodles contributes 20 per cent of revenues and 25 per cent of the operating profit. Besides the obvious impact on sales, the crisis could also hurt the operating leverage of Nestle as prepared dishes and cooking aids was the only segment during year 2014 that was growing in volumes,” he said.
“The impact on brand equity is more devastating because Maggi is widely consumed by kids and restoring consumer trust could take time,” Motilal Oswal said in a research report.
Suggesting a way forward, Prabhudas Lilladher analysts said, “We believe that Nestle will have to reformulate the product, improve production processes, change packaging, claims and communication, and seek approvals for re-launch of product.”
Continuing to fall for the fourth straight session, shares in Nestle India tumbled nearly 8 per cent on Monday, following more trouble for the company over the Maggi noodles row.
Nestle’s stock has plunged over 25 per cent since May 20, when the controversy started. The company’s stock on Monday declined 7.63 per cent to settle at Rs 5,539.80 on the BSE.
In last four trading sessions, the stock has lost nearly 19 per cent, wiping out Rs 12,221.62 crore from its market valuation, which now stands at Rs 53,412.38 crore.
NDTV
New Post has been published on EveryUpdates :
New Post has been published on http://www.everyupdates.org/india/news-india/maggi-case-the-government-should-leave-brand-ambassadors-alone/
Maggi case: The government should leave brand ambassadors alone
Maggi case The government should leave brand ambassadors alone
“Any brand ambassador or celebrity endorsing products or services is liable for action if an advertisement is found misleading, the government said on Monday. It said celebrities like Bollywood star Madhuri Dixit and Preity Zinta are legally responsible, if the advertisements for the popular Maggi noodles were found to be misleading consumers.
According to the Food Standards and Safety Authority of India (FSSAI) Act, anyone who is a party to a misleading advertisement or its publication can be fined up to Rs 10 lakh. The proposed amendments to the Consumer Protection Act also has provisions to issue direction for is continuation of such advertisements and even reporting such violations to police or any other law enforcing agency for criminal prosecution,” says a report in the Times of India.
(Nestle has issued statements denying the charges.)
The government statement on the action that could be taken against brand ambassadors makes for an interesting debate. Under the FSSAI Act, brand ambassadors can be fined up to Rs. 10 lakh if he or she is party to a misleading advertisement. The statement speaks of some proposed amendments which we can ignore for the moment.
The amount of the FSSAI fine is ridiculous and is hardly a deterrent, considering brand endorsement deals run into crores; the more important issue is whether the brand ambassador should be held responsible – and who else should be?
Should the advertising agency (and all who worked on the campaign), the film production house, every single employee of the offending company – or all those who worked on any ad which is ‘found misleading’ be held liable?
What we are seeing in the current Maggi issue is NOT one of misleading communication. If the communication were to be thought to be misleading, it would be an issue for discussion by the Advertising Standards Council of India.
The current issue revolves around allegations of a banned substance (MSG) being found present in the product and excess levels of another substance (lead) being found as well. That’s got nothing to do with advertising or the brand ambassador. That’s for the FSSAI to deal with – and that’s a production issue. The FSSAI can take up the issue with all those involved with the manufacture of the product.
Advertising agencies and brand ambassadors come into play only AFTER a product is cleared by whatever authority. If Maggi is cleared to be sold by FSSAI, or a public issue ad cleared by SEBI or a political ad cleared by the Election Commission, that’s all that ad agencies and brand ambassadors are concerned with.
In the current case, if, indeed, MSG and excess lead are found, it is the government authorities charged with oversight of adherence to FSSAI rules and norms who should be held responsible.
Advertising agencies and brand ambassadors do not promote – ever – an illegal product. Every product or service that is promoted is legitamised by one or more government agencies. There are laws governing the advertising of some products (such as alcohol and tobacco products) and guidelines for all others (from ASCI). If there are failures and transgressions in manufacturing norms, advertising and brand ambassadors have nothing to do with it.
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