Challenges faced by Nestle

 




  • Maggi was the most popular instant noodles brand in India, which children in particular loved to snack on. The brand had a dominant position until suddenly in mid-2015 it got engulfed in controversy. Several state food regulators found that Maggi contained monosodium glutamate as well as lead well above the prescribed limits which were harmful especially for children. When Nestlé India was confronted with lab test results, it stuck to its position that they had a world-class quality control process in place and that their products were safe for consumption. Finally, the national food regulator FSSAI, ordered a ban on the sale of Maggi including product recall. Consequently, several state governments imposed temporary ban on the sale of Maggi noodles in their respective states. The future of the company suddenly looked very bleak.


  • Critics have accused Nestlé of discouraging mothers from breastfeeding and suggesting that their baby formula is healthier than breastfeeding, despite there being no evidence for this. This led to a boycott which was launched in 1977 in the United States and subsequently spread into Europe.


  • Multiple reports have documented the widespread use of child labour in cocoa production, as well as slavery and child trafficking, throughout West African plantations, on which Nestlé and other major chocolate companies rely. According to the 2010 documentary, The Dark Side of Chocolate, the children working are typically 12 to 15 years old. The Fair Labour Association has criticized Nestlé for not carrying out proper checks.

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