Hindustan Unilever Ltd. (HUL), which owns the Horlicks and Boost brands, has announced that it will sell its “health food drinks” following a regulatory crackdown on packaged products companies’ claims that many of their foods are “healthy.” ” category was repositioned to “Functional Nutrition Drinks.” They contain excessive amounts of sugar.
The FMCG giant said in a post-earnings investor presentation that it is dialing up the benefits and nutritional science of its packs to help consumers make informed choices about their food and beverage consumption.
HUL does not expect sales to be affected, given the allegations on social media that have led to increased scrutiny of high sugar content in so-called health foods and drinks.
On April 10, the Ministry of Commerce and Industry told e-commerce platforms to remove all drinks such as Bournvita and Horlicks from the “health drinks” category, stating that there is no such thing as a “health drink” defined as a food product in this country. I instructed him to do so. and the Safety Standards Act.
The Food Safety and Standards Authority of India (FSSAI) has directed all e-commerce companies not to label dairy-based, cereal-based or malt-based drinks as ‘health drinks’ or ‘energy drinks’. This is because the term “health drink” is not defined in the country’s food law, and in the same law “energy drink” specifically refers to flavored water-based beverages (both carbonated and still). is.
healthy growth
Horlicks and Boost delivered strong growth to HUL in the March quarter on the back of a healthy combination of pricing and volume growth. Horlicks has a turnover of over Rs 2,000 crore and Boost is set to join the Rs 1,000-crore club, the company said in an investor presentation.
Rohit Jawa, CEO and MD of HUL, said that the company’s Horlicks and Boost have the least amount of added sugar compared to other brands. “Horlicks’ tagline, ‘Taller, Stronger, Sharper,’ is backed by science,” Jawa asserted. “We are fully compliant with FSSAI guidelines.”
Management said that while HUL’s adult nutrition product portfolio is “sugar-free”, products in the children’s portfolio do contain some sugar, which complies with local and Unilever standards for making beverages palatable. He said that it is in line with. According to management, the “Functional Nutritional Drinks” category addresses the needs of local communities for protein and micronutrient deficiencies. “This category has real meaning for low-penetration consumers,” company executives told analysts on a post-earnings conference call.
HUL’s main focus will be to increase penetration and establish a strong presence in the premium segment, which currently has a turnover of Rs 600 crore. According to HUL, “Horlicks is a generational product with strong brand recall. Our focus continues to be on strengthening its relevance.”
