Horlicks Row: Hindustan Unilever (HUL) has rebranded its health food drinks as functional nutritional drinks (FND) in response to a directive from the Union Ministry of Commerce and Industry. The ministry asked e-commerce websites to remove drinks and beverages from the "healthy drinks" category on their platforms.
Ritesh Tiwari, chief financial officer of HUL, announced the rebranding and stated, "We have changed the labels of the category to FND, which is a more accurate way to describe it." Tiwari added that the FND category remains under-penetrated, offering significant growth opportunities. The company plans to focus on increasing its customer base, enhancing usage, and providing more benefits to encourage consumer upgrades within the category.
HUL is also seeing stronger growth in its premium product range, which targets diabetes management and women's health.
The move follows a decision by the National Commission for Protection of Child Rights (NCPCR), which revealed that the term "health drinks" lacks a clear definition under the Food Safety and Standards Act of 2006. The Food Safety and Standards Authority of India (FSSAI) directed e-commerce websites to avoid categorising dairy, cereal, and malt-based beverages as "health drinks" or "energy drinks," as these labels could mislead consumers.
Two weeks ago, the Ministry of Commerce and Industry instructed all e-commerce platforms to remove their beverage offerings from the "healthy drinks" category. This directive may impact brands such as Bournvita, which have traditionally marketed their products as healthy options.
The ministry issued the notification on April 10, 2024, requiring e-commerce platforms to eliminate all beverages from the "healthy drinks" category.
All these developments happened after Mondalez India-owned Bournvita caught attention for its high sugar levels a year ago.