The Importance of Transparency in Food Manufacturing
The importance of health as well as awareness has made Indian consumers vulnerable and resilient at the same time. Experiencing these uncertain times has made consumers re-evaluate their decision-making. They want food brands to give them greater decision-making control by being more authentic and transparent, and this is particularly evident with their food and drink purchase behaviours. But sometimes food brands do not live up to the potential of effectively communicating with consumers, as in the Bournvita controversy.
Prologue
How many times have you read the label of your favourite food and wondered, “What is really in this?” Today, more than ever before, consumers are thinking about food—from how it’s produced and what’s in it to where and when they eat it. People are concerned about how much salt, sugar, or fat they are consuming, and are the food companies honest about it.
Globalized supply chains, digitization, and stronger reporting of food safety have all led consumers and regulators to demand greater transparency from food manufacturers. In fact, a recent survey revealed that consumers hold food companies the most responsible for showing transparency, more so than farmers, grocery stores, and restaurants. For food companies, this means that food manufacturing transparency has become an even more critical area of focus to ensure both compliance and customer satisfaction.
Transparency has now become a watchword in the food industry as stakeholders become more and more concerned with the quality and source of finished goods.
In this article, “Mithai and Namkeen Times,” amid the colossal Bournvita controversy, we explore understanding what transparency means, why food companies should pursue positive and clean marketing strategies, FSSAI’s stand, and what it involves or how to improve it.
The controversy
It started with an Instagram video in which a health influencer questioned the health benefits of Cadbury Bournvita, citing its high sugar content. However, he took down the video soon, citing a legal notice sent to him by the FMCG giant. Cadbury Bournvita is owned by Mondelez. Bournvita has been an iconic brand with widespread popularity among children. It comprises chocolate-flavoured edible powder that is mixed in milk to entice children into having their daily serving of milk with less fuss.
Though the video may have been taken off social media platforms, the controversy has raised questions about marketing, the truth of the health label of consumer food products, and the role of regulators in such matters.
Reportedly, the video had received 12 million views on Instagram by the time it was taken down under pressure. Following this, the Mondelez India-owned health drink brand released a statement rejecting such claims.
The company stated the claims made by the influencer were unscientific as he distorted facts and made false and negative inferences.
What is Bournvita’s take on the matter?
Bournvita has earned the trust of consumers in India by being a scientifically formulated product that adheres to the highest quality standards and complies with all the laws of the land.
The company is concerned by the unscientific video on social media that went abnormally viral, distorted facts, and made false and negative inferences about Bournvita’s safety and efficacy. The presenter’s comments were not based on science and were designed to drive anxiety and fear among its loyal consumers by misrepresenting the facts and omitting factually correct information to sensationalize his view. The company also claimed that the video has created panic and anxiety and “questions the trust that consumers have bestowed on brands like Bournvita. According to Bournvita, all their claims are verified and transparent, and all ingredients have regulatory approval. All the necessary nutritional information is mentioned on the pack for consumers to make informed choices.
Bournvita is best consumed with a glass of 200 ml of hot or cold milk, as highlighted on the pack. Every serving of 20 grams of Bournvita has 7.5 grams of added sugar, which is approximately one and a half teaspoons. This is much less than the daily recommended intake limits of sugar for children.
One of the most loved health drinks contains nutrients such as vitamins A, C, D, B12, iron, zinc, copper, and selenium, which support the immune system. These have been part of our formulation, and we have always called out “helps with the healthy functioning of the immune system” on the back of our pack for several years (even before the COVID-19 pandemic).
Caramel colour (150 C) is within permissible limits as per guidelines defined by regulations. All ingredients are safe, approved for use, and within permissible limits as per the regulatory guidelines.
So, are health supplements needed?
Only a nutritionist will be able to assess a child’s current nutrient intake and will prescribe supplements, if necessary, based on the deficit of nutrients in daily food intake, which will ensure nutritional adequacy and prevent deficiencies or toxicities from such supplements.
Every health drink or supplement varies in composition and consists of both the benefits and downsides of additives. They are supplements taken alongside milk that contain proteins, minerals, micronutrients, and vitamins and are given to children who are very fussy or are underweight. But on the down side, they are also loaded with carbohydrates (between 12 and 17 g) in 4 tsp of supplement, which, when added to milk, is equivalent to one serving of cereal or chapatti consumed for breakfast. Therefore, this needs to be considered while planning a child’s daily meal to ensure we do not go overboard in feeding them, which will increase the risk of being overweight and prone to lifestyle diseases.
We are surrounded by multiple products with nutrition labels and lengthy claims, but it is equally important for every consumer to understand that no claim should be blindly accepted. According to medical experts, children between the ages of 2 and 18 should have less than 6 teaspoons of sugar or 24 grams of sugar. Meanwhile, children less than 2 years old should not have any added sugar. This is because a lot of children are now obese and have type 2 diabetes. Young adults are having heart disease and heart problems, and a lot of chronic and allergic conditions come to children when they grow up. It is important to restrict them from eating a lot of processed food and carbonated and sugary drinks unless they are medically prescribed by the doctor. It is best to avoid over-the-counter products since they contain high sugar content.
As claimed, this is no doubt within the recommended amount of calories (10%) from sugar as per WHO guidelines for a healthy child to ensure that they do not indulge in a high intake of simple sugars that increases the risk of obesity and chronic diseases.
While the Food and Safety Standards Authority of India (FSSAI) constituted a technical committee that in 2020 issued a guideline stating that warning labels were needed on products with more than 6 gm of sugar per 100 gm. This has been revised multiple times to 36 gm per 100 gm.
And as the brand claims, each serving of Bournvita contains just 7.5 gm of sugar, which adds up to much less than the recommended daily sugar intake limit for children. The brand has been in use for over 70 years and is a scientifically designed formula, according to the company.
Reaction
The National Commission for Protection of Child Rights (NCPCR) received a complaint alleging that Bournvita promotes itself as a health drink that improves children’s growth and development, but it contains a high percentage of sugar and other substances that might impact a child’s health.
Resulting in the commission asking Mondelez India-owned brand Bournvita to review and withdraw all “misleading” advertisements, packaging, and labels after the controversy created by the video claiming that the health drink contains a high percentage of sugar and contains contents that may have a harmful impact on the health of children. In a notice to Deepak Iyer, President of Mondelez International, India, NCPCR Chairperson Priyank Kanoongo demanded the health drink manufacturer file a detailed report or explanation with the commission in the matter.
Also, the Nutrition Advocacy in Public Interest Group had decided to lodge a complaint with the Ministry of Consumer Affairs, siding with the influencer.
The Instagram reel garnered more attention than the advocacy group could for over a decade about the potential harm posed by such products. While companies will go about their business, couching realities in different wording, it is the regulator’s responsibility to call them out and lay down the exact terminology for disclosure of contents.
FSSAI on Transparency
Transparency starts with your own food manufacturing operations. Although this may sound easier than sifting through the multiple levels of supply chain transparency, in fact, it can be quite challenging. Food manufacturers may have a good grasp of all their workflow processes, but it’s also important they have the ability to make appropriate information available in real-time to regulators, consumers, and internal food safety personnel. A key first step to obtaining the necessary real-time information for transparency in processing is to conduct an internal audit to certify that proper food safety practises are being abided by and reported on.
Transparency requirements in food processing are now becoming stricter, with the Food Safety and Standards Authority of India (FSSAI) making regulations for food labelling.
In recent years, FSSAI has been raising the bar when it comes to food safety and nutritional information. They want you to spill the beans on what’s really in your products so your customers can make informed decisions about what they are consuming. It’s just a little transparency to keep everyone happy and healthy.
The FSSAI has released the Food Safety and Standards (Advertising and Claims) Second Amendment Regulations of 2022, which entail a set of modifications to advertising and claims on food products. Under the new regulations, brands are required to provide more transparent information on food packaging and can be held accountable for the accuracy of any advertisements and claims made on labels. For instance, you can classify your food product as “low fat” only if it contains 3 grams or less of fat per 100 grams, while “fat-free” can be used only if the fat content is less than 0.5 grams per 100 grams. Similarly, “low sugar” can be stated on the label only if the product has 5 grams or less of sugar per 100 grams.
The same type of condition applies to other nutrients like protein, cholesterol, vitamins, dietary fibre, gluten, etc. Additionally, claims such as “no added salt” can be made only if neither the food item nor its ingredients contain any sodium salts or substitutes.
Moreover, the regulations aim to restrict the use of adjectives such as “natural,” “fresh,” “pure,” etc., as part of brand names and trademarks. For instance, in the case of Dabur Real Fruit Juices or Dabur Homemade Cooking Pastes and Purees, the names “Real” & “Homemade” are merely trademarks and do not necessarily reflect their actual nature. However, under the new regulations, brands will be required to display this information prominently on the front of the packaging in specific font sizes.
If your food product claims to reduce the risk of a particular health condition or disease, you will have to specify the amount of food that needs to be consumed per day for the claim to be valid. Additionally, there are other disclosure requirements related to the quantities of nutrients and micronutrients present in food items.
As a brand operating in the packaged food space, it is crucial to keep up with these changing norms from the FSSAI.
Here are some tips for food companies to ensure they are complying with the new regulations:
Revisit packaging design: With the introduction of new regulations, it is important to revisit packaging design. It is important to ensure that the new labelling requirements are incorporated into existing packaging designs in a manner that is both visually appealing and easily understandable by consumers.
Ensure compliance with the new labelling requirements: Reviewing the regulations carefully as the new regulations mandate brands to make clearer disclosures on food packets, holding them responsible for advertisements and claims on labels. Food companies need to check thoroughly and ensure their products meet the new requirements, including the use of accurate nutrient information and clear labelling of allergens.
Invest in nutrition education: To help consumers make informed choices about their food, manufacturers should invest in nutrition education campaigns to highlight the reasons why they should choose their brand based on nutritional merit. These campaigns can help consumers better understand the impact of their food choices on their health, and help them make informed decisions in the food company’s favour.
Be transparent with consumers: food manufacturers need to be more and more transparent with consumers about the ingredients and nutritional value of food products. This can be achieved by providing detailed nutritional information prominently on the packaging, as well as by making this information available online and through other channels.
Stay up-to-date with changing regulations: Manufacturers should not forget to keep up with any updates. As the FSSAI continues to update and refine its regulations, it is important for them to stay up-to-date with these changes to ensure they stay ahead of the curve when it comes to providing consumers with the information they need.
The FSSAI’s new regulations are aimed at improving food safety and nutrition for consumers in India. As a brand operating in the packaged food space, it is important to stay up-to-date with these changing norms and take the necessary steps to ensure compliance. By doing so, brands can build trust with consumers and position themselves as leaders in the industry when it comes to providing clear and concise information about the nutritional value of their products.
Transparency in marketing
The desire for transparency has been created in a technological culture where feedback moves fast, access to information is easy, and open sources are expected. Consumers have always had a voice, but now, thanks to social media, they can make their voice resonate internationally and in real-time. Although the requirements of transparency may sound like a burden for food manufacturers, they also represent a powerful marketing opportunity. Consumer desire for transparency in food means those food companies that can provide it grow in consumer esteem and, ultimately, brand equity.
It’s important for food companies to make sure that whatever is promised and marketed to their customers is actually delivered. Nothing makes a customer lose faith in a company faster than false promises made to sell them a product. Not keeping promises can also harm food manufacturers because unhappy customers tend to be more vocal in their complaints than satisfied ones.
Food companies need to tailor how they market transparency to each stakeholder rather than treating all of them in the same manner, and this can only be achieved through feedback. Food companies often measure how satisfied their stakeholders are by using communication methods such as surveys and polls. For example, a food manufacturer may feel it’s doing an excellent job of maintaining transparency with its customers, but unless there is direct input from the consumers themselves, there may be a jarring disconnect.
Feedback on transparency efforts can also be used by food manufacturers to target new consumers and partners. For instance, once a food company knows the sources for its raw materials and how they are handled through its facilities, it has the nexus of creating a new, focused marketing campaign based on company transparency and the pride it takes in its product.
Consumer food product companies should be transparent about the contents of their products. These companies should be prevented from advertising to children. Even if they advertise to children, it is required that they clarify the harmful effects of the product on children’s health.
FSSAI also suggested a rating system for food products, stating that 0.5-star ratings would qualify as least healthy and five stars would be most healthy. It is a good start since it helps people who are not too aware of the nitty-gritty of nutritional guidance. Right now, it is difficult to read the nutrition chart since it is written in such a small font.
Frank Talk with Consumers: Editors Pick
Communication with consumers in a transparent manner is crucial, especially at a time when packaged food companies are under intense scrutiny from regulators, health groups, and consumers. Those of us who choose to complicate the issue—I don’t think it’s in the interest of either them or the consumer. You’ve got to be as transparent as you can.
Fundamentally, trust, transparency, and responsibility go together, especially in the food business. Food companies cannot throttle the voice of consumers, even more so in the age of social media. Those who talk about brands on social media are also consumers. After all, it is they (consumers) that bring in revenues.
Last month, when Mondelez’s milk drink Bournvita came under massive fire on social media for having “very high levels of sugar”, it went viral with 12 million views on Instagram, and this led to social calls such as #BoycottBournvita.
Though Mondelez issued statements that Bournvita is a “scientifically formulated product”, and that the video in question created “panic and anxiety”, the matter escalated across the country, leading to health and nutrition groups such as Consumer Voice and NAPi India (Nutrition Advocacy in the Public Interest) urging the government to revise regulations and labelling guidelines for packaged foods and bring in stronger governance on claims made by packaged foods.
On April 30, FSSAI said it found 32 fresh cases of food business operators making misleading advertisements and claims. The national foods regulator said these products included health supplements, organic products, staples, and millet-based products and warned that deceptive claims or ads could be punishable offences under the FSS Act.
In the age of social media, I believe that brands need to work heavily on crisis management strategies to navigate any controversies that may blindside them. Social media is a dynamic world and can possibly bring to the forefront crises that brands and advertisers may never be able to ascertain as to what they are and where they stem from.
Advertisers should, in the first place, be respectful of free expression and understand the audience’s sentiment. Assess the crisis stage, whether it’s multi-channel, fake news, social activism, or industry-related, and chart out strategies to counter each type of crisis, which will benefit the brand in the long run. It’s crucial for brands to respond with empathy, authenticity, and transparency and ensure that they don’t alienate any portion of the audience.
Transparency is, in fact, the most crucial aspect for brands here. Brands need to be open and honest with their audience to ensure that their trust and credibility are maintained. This need not be limited to just an official statement or a post in a crisis, but through regular updates. Remember, having strong check models in place with transparency about the manufacturing process can also help in managing false accusations or misinformation.
Brands are typically bound by legal teams that have designed responses ready to counter different crises well in advance. While it’s imperative to have these measures ready, brands typically forget that consumers need to be dealt with at a certain level of sensitization.
Now Bournvita needs to give a human face to the crisis and address it head-on. In fact, it can bank on the other influencers, advocates, and stakeholders in their campaigns, who could play a crucial role in building a positive reputation and responding effectively to any crisis.
Coincidentally, it was the personal connection that precisely helped Cadbury during the worm scandal years ago. They got Amitabh Bachchan on board to offer his emotional monologue as the brand’s response, and this worked wonders for their reputation and crisis management.
In today’s age, consumers are more conscious of what they consume and the impact of the products on their health. They expect Bournvita to communicate with them openly and honestly. It is important for the company to maintain a sense of trust and credibility to ensure it retains a base of loyal consumers who have helped the brand grow and flourish.