Nestlé India Faces FSSAI Action Over Infant Nutrition Claims And Biotin Test

The Food Safety and Standards Authority of India took legal action on Friday against Nestlé India over non-compliance issues linked to its infant nutrition products NAN Excella Pro Stage 1 and Lactogen Pro 1. The regulator’s adjudication sanction also cites promotional claims for those products and a lab finding on biotin content.

In an Instagram post, FSSAI said, “Legal action initiated against Nestle India Ltd over several non-compliances pertaining to the FSS Act. FSSAI remains committed to strengthening the food safety ecosystem through its enforcement actions.” The announcement was followed by a market reaction.

Nestlé India shares gave up earlier gains and slid by as much as 4.1 per cent to ₹1,333 in late afternoon trade on Friday. The stock had earlier touched an intraday peak of ₹1,389 and was up more than 1 per cent at one point. By 2:24 pm, it was down 1.2 per cent at ₹1,355, with roughly 65,000 shares changing hands on the BSE versus a two-week average of about 53,000.

Claims Under Scrutiny

FSSAI looked at the way the infant nutrition products were promoted. It examined NAN Excella Pro Stage 1 and Lactogen Pro 1, along with promotional material on e-commerce platforms.

For NAN Excella Pro Stage 1, the claims under review included “5 HMOs” and “Whey Protein”. For Lactogen Pro 1, the regulator scrutinised a claim that “Whey Protein” was easy to digest. FSSAI said both claims violated Regulation 4(2) of the Food Safety and Standards (Foods for Infant Nutrition) Regulations, 2020.

That rule limits promotional claims or material meant to boost the saleability of infant foods. FSSAI also invoked Section 3 of the Infant Milk Substitutes, Feeding Bottles and Infant Foods (Regulation of Production, Supply and Distribution) Act, 1992, which bars advertising and promotion of infant milk substitutes and infant foods covered under the law. The regulator stated that it had sought explanations from Nestlé India and filed three adjudication cases over the breaches.

Biotin Test Results

FSSAI also pointed to a laboratory issue. It stated that a sample of follow-up formula made by Nestlé India was classed as “sub-standard” because of its biotin content during lab testing.

“It was subsequently sent for re-analysis, with the referral laboratory also finding the sample non-conforming with the prescribed biotin requirement under the Food Safety and Standards (Foods for Infant Nutrition) Regulations, 2020,” FSSAI said.

Wider Enforcement Drive

The move comes against a wider enforcement backdrop.

In August, FSSAI said it had served more than 150 notices to food companies in recent months over misleading advertisements, false claims and labelling non-compliance. Nestlé India, PepsiCo and Coca-Cola India were among the companies named.

The latest step also comes after a separate June notice FSSAI sent to Nestlé India over allegations of insect larvae in a packet of Maggi noodles. According to Business Standard, the regulator took Suo motu cognisance of social media complaints alleging contamination.

Nestlé denied the charge. In a response to stock exchanges, the company said the complaint came from an “unverified account” and that it had not received a sample from the complainant because the account could not be reached. It also said a reference sample from the same batch, tested at an independent FSSAI-notified and NABL-accredited laboratory, was free of infestation.

Labelling Rules Push

Nestlé has also pushed back on another policy matter.

The company has urged the government to involve industry while drafting India’s front-of-pack food labelling rules. Reuters reported that Nestlé CEO Philipp Navratil said companies should be consulted during the drafting process and that the system should be developed “scientifically”.

The proposed rules would require warning labels on packaged foods high in sugar, salt and fat. The Supreme Court has asked FSSAI to set out a clear timeline for rolling out the front-of-pack warning labels.

FSSAI has proposed a two-stage system. The first stage would apply to products high in at least two specified nutrients, while the second would extend warnings to products high in any one of them.