Maggi Row: the reputed Instant noodle brand faces exile in India

1,345 views

noodle-brand-faces-exile-in-IndiaIn a country of more than 1.25 billion people it is not that easy for a brand to go strong with its reputation for a span of 3 decades. Nestlé’s Maggi is one such brand which has achieved the task successfully. There are massive numbers of fanatic for the brand who cannot do without tasting their favorite 2-minute noodles at least once in a day. The brand has been successful time and again in repackaging its presence and winning hearts of consumers for with excellent marketing strategies that have been profitable beyond expectations. The noodle is a 2 minutes snack solution at every hour of the day.

However, there is a dark cloud looming over the brand which has literally devastated Maggi’s market presence. The bad omen for the brand has at least been successful in completely wiping the product off at least for now.

Why is Maggi facing a permanent wash-off danger?

This entire struggle for Maggi started on 26th March, 2015 at a lab in the Babu Raghav Das Medical College in Gorakhpur in Uttar Pradesh. The analysts working in the lab found a few samples of the eatable to contain MSG (Monosodium Glutamate) in its most popular taste maker which acts as a taste enhancer but not advisable for human consumption. The chemical is the cause for several serious diseases ranging from organ failures to cancer. In addition, the samples were also found to carry lead beyond the allowed quantities which is again a fault by the experienced manufacturer.

This news of improper ingredients in the instant noodles has spread like a forest fire thanks to the alert media community around the country. Maggi samples from other states started getting tested and were found to be the same following which the once household brand is banned all over the country today.

What this means for Nestle?

It is needless to mention that the maker will have to bare the burns of losses, but how much is it? That’s the BIG question. Nestle on its part was working towards the damage control but according to the market observers they were late to react and things went out of control by the time they pushed the panic button.

When the losses are considered, the numbers are massive for Nestle as it holds 70% of the instant noodle market in India alone. According to the research reports, 30% of the company’s total revenue (around 9,000 crores INR) is rooted from Maggi.

Other noodle brands too in danger:

After the shocking discoveries of hazardous substances in India’s oldest noodle brand, products from other competitors such as ITC, HUL and Nissan Foods are also expected to go under stringent testing for quality. In fact, other brand representatives don’t seem to be much worried as they are already challenging the authorities for their product’s superior quality.

Nestle as a precautionary step has withdrawn Maggi noodle stocks from India.

Tweet

Noodles is known as the “comfort food” all around the globe, about 102.7 billion servings were consumed last year. This makes it 14 servings for each person on the planet for the year, In India, the food item is especially considered for it is “FAST TO COOK, GOOD TO EAT”.

However, with the entire banning saga across (that doesn’t seem to halt for now) it would be interesting to watch how the brand returns to “spreading its 2-minutes happiness” again.