Nestle aims to be in the market soon and is working on alternate options. Snacking is an opportunity that Nestle does not want to lose. It may also involve relaunching Maggi, but in a different format, a process that could take some time.
“Carrying out Nestle’s rigorous quality and testing practices, we are confident that we will come back soon,” the spokesperson said.
The company has a strong global R&D presence. “We do more food testing than anyone in the world. Around 100 million analyses are carried every year,” he said.
Maggi noodles has a sales of Rs 2,000 crore. Though production at Moga, Pantnagar, Nanjangud, Bicholin and Tahliwal is suspended, but research is going on.
The recall of Maggi noodles on June 5 is one of the biggest exercise in history of packaged foods in India.
Costing Rs 320 crore, 27,420 tonnes of Maggi Noodles stock was destroyed. Nestle has challenged the FSSAI order in Bombay High Court. Hearing has been fixed for June 30.
Nestle said its quality assurance centre at Moga was the biggest in Nestle South Asia and tests for pesticide residue and heavy metal content in a wide range of products such spices, milk, cereals and confectionery.
Meanwhile, despite the ban, lovers of the snack in South Delhi are shelling out Rs 102 per packet, which was sold for just Rs 10 per packet. Looking at the demand, shopkeepers are fleecing the customers; they charge what they feel like for the 75 gm packet. Suprisingly, a person cannot buy more than two packets of Maggi.
Nestle Global Chief Executive, Paul Bulcke, said, Maggi products were safe, adding “packaged food was unfairly fingered by many around the world as a health risk”, AFP reported on 23 June.
The company’s reputation had been badly punctured “because it’s a big brand and the ban made it worse,” AFP cited Bulcke saying.
“The only thing that interests me is to have the product back as soon as possible,” he said.
Maggi may lose more than $200 million in brand value following the FSSAI ban; it was $2.4 billion before the development.
“Any health concerns raised by FSSAI is sure to damage customer loyalty,” said David Haigh, CEO of the London-based brand valuation consultancy.
“Nestle will have to ensure Maggi brand can retain its dominance in the Indian market. If not, the Nestle brand itself could be at risk.”