Added Sugar in Baby Food Turns Bitter for Nestle

Case Code: BECG193
Case Length: 12 Pages
Period: 1974 - 2024
Pub Date: 2025
Teaching Note: Available

Price: Rs.300
Organization: Nestle S.A.
Industry: Food & Beverage
Countries: -
Themes: Ethics in Marketing, Business Ethics,Socially-responsible Business Practices,Ethics in Marketing

Abstract Case Intro 1 Case Intro 2 Excerpts

Excerpts

The Baby Food Controversy

In April 2024, investigators from the Swiss investigation organization ‘Public Eye’ along with International Baby Food Action Network (INFAN) had sent samples from Nestle’s baby food brands ‘Nido’ and ‘Cerelac’ to a laboratory in Belgium to test for added sugars. The laboratories in Switzerland had declined to test the baby food products for sugar analysis as they perceived that the results would have a negative effect on their existing customers. Laurent Gaberell, Researcher, Public Eye, Commented,..

Nestle’s double standards?

Public Eye had reported that Nestle was practicing double standards and adopted deceptive marketing strategies. The report by Public Eye also mentioned that as the world market leader in baby foods, the company had adopted every tactic to be in the top position. In 2022, Nestle had sales of more than US$ 2.5 billion in this category as per Euromonitor, a firm into market analysis of the food industry. The popular baby food brands in the low and middle income countries were Cerelac and Nido..

Unethical Marketing Practices

Nestle’s marketing of its products was also under scrutiny with many analysts terming its usage of social media influencers to market its products as unethical. According to Phillip Baker, Senior Research Fellow at University of Sydney, Nestle utilized its network of health professionals and experts to create loyalty among its consumers for its products. Due to strict regulations in the developed countries, Nestle adhered to WHO’s recommendations on marketing of baby foods to children under the age of six months, but in the developing countries, the company exploited the loopholes in the system and lax regulations to continue marketing its baby food products for infants under the age of six months..

The Ill Effects of Added Sugar In Baby Food

Experts opined that added sugars in baby foods as well as in the diets of babies carried the risk of tooth decay in their childhood and long term effects of diabetes, obesity and other chronic disease in their adulthood. Dr. Sumaira Quazi, Pediatric Sleep Specialist and Consultant, SPARSH Hospital, Bengaluru, India, Commented, “Sweetness might seem innocent, but when it comes to infant health, sugar isn’t the sweetest deal. Sugar is not safe to introduce into babies’ diets, given it affects their systems in multiple ways..

Nestle’s Previous Controversies

Earlier in 1974, Nestle was embroiled in a controversy when the company promoted its baby food formula and also discouraged breast feeding. A report titled “The Baby Killer” triggered a huge backlash and Nestle’s baby products were boycotted across the world. The report stated that by promoting bottled food for infants and discouraging breast feeding, Nestle’s products had caused death and illness of infants in developing countries due to non-availability of safe potable drinking water..

Road Ahead

FSSAI had affirmed that it was going to conduct a thorough investigation into the added sugar in baby foods controversy. FSSAI had also constituted a committee to look into the allegations and assured that stringent action would be taken against Nestle if found violating the regulations. Meanwhile Nestle had released a statement stating, “We would like to assure you that our Infant Cereal products, are manufactured to ensure the appropriate delivery of nutritional requirements such as protein, carbohydrates, vitamins, minerals, iron etc. for early childhood.”

Exhibits

Exhibit I: Details of the Added Sugar Content in Baby Foods across the World
Exhibit II: Regulations on Baby Foods in Some Countries across the World
Exhibit III: Financials of Nestle from 2020 to 2023 (In CHF)
Exhibit IV: Amount of Added Sugar in ‘Ceralac’ in Different Countries
Exhibit V: Taglines used in Indonesia and Brazil by Nestle
Exhibit VI: Unethical Advertising of Baby Foods by Nestle in Some Countries

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