With a Supreme Court order expected soon on front-of-pack warning labels, food CEOs are rushing out healthier versions of their products.
India’s packaged food companies are getting ready for a red warning label on the front of their packs. The big question is whether healthier recipes can still taste the way customers expect.
The Supreme Court is expected to rule soon on front-of-pack labels for foods high in fat, sugar and salt. Ahead of that, companies are speeding up the launch of no-added-sugar and low-salt products. Their bosses admit that keeping the taste the same is the hardest part.
Taste is the hurdle
Britannia MD Rakshit Hargave said the main challenge is making a no-added-sugar product taste good enough for people to buy it again. Britannia makes NutriChoice biscuits and Laughing Cow cheese. On the company’s second-quarter earnings call, he said more health-focused products are coming soon.
PepsiCo India and South Asia CEO Jagrut Kotecha wrote on LinkedIn that the industry must respond as people move towards healthier food, without giving up on taste.
The head of another large food company, speaking without being named, said firms face two hard choices. They can accept the red label on their packs, or they can cut sugar and salt and risk changing flavours Indians have known for decades.
The red hexagon
The Food Safety and Standards Authority of India (FSSAI) has proposed bringing in red hexagonal warning labels all at once, not in phases. It could be the biggest change to food packaging India has ever seen. The idea has been stuck for more than ten years because of controversy, court cases and opposition from big food companies.
The Supreme Court has reserved its order on when the rules should take effect. It has said that whatever it decides will be binding.
Why ₹10 packs matter
Almost 60% of everyday packaged foods, including noodles, biscuits, chips, chocolates and sweets, are sold in ₹10 packs. These packs drive most of the industry’s sales volume, so this is where warning labels are expected to have the biggest effect.
Regulators get tougher
FSSAI has already sent notices to more than 150 food and drink brands in recent months. They include HUL, Nestlé, PepsiCo, ITC, Mondelez, Red Bull and Ferrero, and the notices relate to wrong or misleading label claims and other labelling violations.
In Maharashtra, food officials seized packaged foods worth about $80,000 from a warehouse in Navi Mumbai on September 1. The haul included Lay’s chips, Maggi noodles and Knorr soup, and the packs carried fake expiry dates and ingredient labels.
FSSAI CEO Rajit Punhani said last month that pressure from big food companies does not worry him. He said misleading customers through labels is unethical and that large firms should set the example by following the rules.
How the industry is responding
Most companies say they will comply:
- HUL (Kissan, Horlicks): MD Priya Nair told investors the company supports clearer nutrition information and is well prepared to follow FSSAI’s proposed rules.
- Nestlé India: MD Manish Tiwary said food safety and quality are the basis of consumer trust.
- Mother Dairy: MD Jayatheertha Chary said growing concern about food safety is pushing more people towards packaged products.
- Godrej Agrovet (Yummiez, Real Good Chicken): MD Sunil Kataria expects people to move from unbranded street food to branded products, as Indians look for cleaner, more hygienic food.
The cost of compliance
Saurya Bhattacharya, a partner at JSA Advocates & Solicitors, said the new labels could mean a lot of extra work for food companies. They may need to rework supplier arrangements, update contracts and change their investment plans.