After Bournvita row, HUL withdraws ‘health drink’ label from Horlicks. What’s it now?
Upstox
3 min read • Updated: April 25, 2024, 1:14 PM
Summary
Horlicks, the popular Malt-based drink sold in India since 1918, will no longer be labelled as a health drink, as per a clarification issued by Hindustan Unilever Ltd during its earnings press conference. Days earlier, the commerce ministry had asked e-commerce websites to remove beverages from the healthy drinks category.
Days after the Ministry of Commerce and Industry asked e-commerce websites to remove Cadbury’s Bournvita, along with other beverages, from the ‘health drinks’ category, the Hindustan Unilever Ltd (HUL) has rebranded its popular drink Horlicks.
The Malt-based drink, sold in Indian markets since 1918, will no longer be labelled as a “health drink”, as per a clarification issued by HUL during its post-earnings press conference on Wednesday, April 24. The category of Horlicks is being changed to “functional nutritional drinks (FND)” from “health food drinks”, the FMCG major said.
The FND label gives a more accurate description of the category, HUL’s chief financial officer Ritesh Tiwari said, according to an Economic Times report. He pointed towards the significant growth opportunities in the FND segment, while highlighting its under-penetration, the report added.
Also Read: Remove Bournvita from ‘health drinks’ category, Govt directs e-commerce websites
How the row over ‘health drinks’ erupted
The controversy erupted in April last year, when a social media influencer posted a video alleging high sugar content in Bournvita. Apart from high sugar, the product has cocoa solids and colourants that may damage the health, the influencer alleged. The video was deleted after Mondelez India, the manufacturer of Bournvita in India, rejected the claims and issued a legal notice.
However, the National Commission for Protection of Child Rights (NCPCR) had taken cognisance of the matter, and sought an explanation from the Bournvita makers. The child rights body had, in March 2024, written to all states and union territories asking them to ensure that Bournvita and similar products were not sold as health drinks at stores and retail shops, the Times of India reported.
Earlier this month, e-commerce websites were also directed by the Food Safety and Standards Authority of India (FSSAI) to not to sell dairy, cereal or malt-based beverages under the category of health drink or energy drink.
Also Read: Explained: Why Nestle India is under radar over baby food product; m-cap dented
What the commerce ministry said on the controversy
In a notification issued on April 10, the commerce ministry said that the NCPCR found there is no health drink defined under the Food Safety and Standards (FSS) Act 2006, and therefore, companies cannot sell their products online by marketing them as health drinks.
“NCPCR, a statutory body constituted under Section 3 of the Commission of Protection of Child Rights (CPCR) Act, 2005 after its inquiry under Section 14 of CRPC Act 2005 concluded that there is no ‘health drink’ defined under FSS Act 2006, rules and regulations submitted by FSSAI and Mondelez India Food Pvt Ltd,” the notification stated.
“...all e-commerce companies/portals are hereby advised to remove drink/beverages, including Bournvita from the category of ‘health drinks’ from their sites/platforms,” it added.