HUL drops 'health' label from 'Horlicks' and 'Boost', repositions as 'functional and nutritional drinks'

First Published Apr 25, 2024, 6:06 PM IST | Last Updated Apr 25, 2024, 6:06 PM IST

In a recent development, Hindustan Unilever Limited (HUL), the parent company of renowned beverage brands 'Horlicks' and 'Boost', has opted to remove the term "health" from its product labels. Instead, the brands will now be positioned as "Functional and Nutritional Drinks," reflecting a strategic shift in marketing approach.

This decision comes in the wake of directives issued by the Ministry of Commerce and Industry to e-commerce platforms, mandating the removal of all drinks and beverages from the 'health' category on their websites. The move follows concerns raised by the government regarding the elevated sugar content in such beverages, surpassing acceptable limits.

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According to a regulatory filing by HUL, the company reported a marginal 1.53% decline in consolidated net profit, amounting to Rs 2,561 crore for the fourth quarter of the fiscal year 2023-24. Despite this, the company highlighted robust performance in its functional nutritional drinks segment, driven primarily by the Plus range of products, contributing to high single-digit growth.

The Ministry's intervention stemmed from an inquiry conducted by the National Commission for Protection of Child Rights (NCPCR), which concluded that no specific category of 'health drink' is defined under the Food Safety and Standards Act, 2006. The move aligns with regulations laid down by the Food Safety and Standards Authority of India (FSSAI) and Mondelez India Food Pvt Ltd, urging against the projection of beverages as 'health drinks' under India's food laws.

Last year, the controversy surrounding beverages escalated when NCPCR demanded that Bournvita withdraw all "misleading" advertisements, packaging, and labels. This action was prompted by widespread criticism following a viral video by influencer Revant Himatsingka, alias FoodPharmer, which highlighted the high sugar content in the drink.

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Bournvita, a brand owned by Cadbury, found itself in the midst of scrutiny, prompting the child rights body to urge FSSAI to take action against companies labeling supplements as 'health drinks' without adhering to guidelines.

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