Hindustan Unilever (HUL), the parent company behind iconic brands like Horlicks and Boost, has announced a rebranding of its ‘health food drinks’ category to ‘functional nutrition drinks,’ according to a report by Business Today. This strategic shift comes amid growing scrutiny surrounding claims of ‘healthiness,’ particularly regarding sugar content in such products.
The move follows a recent advisory from the Ministry of Commerce and Industry to e-commerce platforms, urging them to remove all beverages from the ‘health drinks’ category. Ritesh Tiwari, Chief Financial Officer of Hindustan Unilever, revealed the alteration during the earnings press conference on April 24. Tiwari emphasized the accuracy and transparency of the ‘Functional Nutrition Drinks’ label, highlighting its role in accurately describing the category and hinting at significant growth potential.
HUL reiterated its commitment to enhancing consumer awareness by providing detailed nutritional information on packaging, empowering consumers to make informed choices about their dietary intake.
According to a HUL representative, Horlicks is a generational product with a strong brand recall. The focus remains on reinforcing relevance.” In the March quarter, both Horlicks and Boost contributed to HUL’s growth, driven by favourable pricing and volume expansion. Horlicks surpassed a turnover of Rs 2,000 crore, while Boost is poised to enter the Rs 1,000 crore league.
Rohit Jawa, CEO and MD of HUL, emphasized that Horlicks and Boost contain minimal added sugar compared to other brands. The management clarified that HUL’s adult nutrition range is sugar-free, while products aimed at children contain some sugar, aligning with local and Unilever standards to enhance palatability. The ‘functional nutrition drinks’ category, according to management, addresses community needs by providing essential protein and micronutrients.