For many middle class Indians, Maggi noodles was the most homely food that can occur after their Mother’s own prepared food.
Swiss food multinational, Nestle and its two minute food Maggi possessed that much trust in one of the largest EME food markets. Nestlé’s three fourth of profits comes from EMEs.
Now, after UP Food Safety and Drug Administration’s findings, Maggi is facing a trust crisis. The FSDA of the state found that Maggi contains 17 times lead than the permitted amount. Similarly, it is rich in another unpermitted chemical- monosodium glutamate (MSG).
The Food Safety and Standards Authority of India (FSSAI), a central government body has ordered a countrywide testing of Maggi after the report from Uttar Pradesh.
For the time being, it is customary for Nestle to be a nonbeliever of Indian testing authorities’ judgment. It has requested for ‘independent’ examiners testing. Whether Maggi contains chemicals and whether it makes exaggerated health claims are to be convinced to the public and to the company.
But more than that, Maggi’s fall in one of the fastest growing market should throw light on attitude of some MNCs in developing country markets.
Often they tempt to convince that they are coming from countries where foods standards are very high.
But in practice, their standards will be abysmally low exploiting ignorance of the people and adding false claims in ads.
Everybody knows that many soft drink major’s products marketed in India is very inferior in quality compared to the one they sells in the Middle East.
The MNCs are making profit, without adopting equally good standards they are following in developed markets.
They simply tries to achieve volumes, doesn’t even consider recollecting expired products from the market. Often they make exaggerated claims of the products.
In 2012 alone, Nestle has repatriated 4 per cent of its turnover in India, from selling Maggi to Switzerland for the sake of using the brand name Maggi. This was in the form of royalty payment made by Nestle. Now the MNC has to convince people that it is not profit, but health standards also matters.