April 19, 2023
New Delhi, India
Nestle India Share Price Drop
Nestle India shares witnessed a second consecutive day of decline amidst controversy surrounding the sugar content in its infant milk products sold in less developed countries. Despite the company’s efforts to reduce added sugars in its baby food products, concerns over global FMCG giant Nestle’s product formulations have impacted investor confidence.
Market Reaction:
Stock Performance: Nestle India shares experienced a decline of as much as 3.53% during the session, reaching a low of Rs 2,375.75 on the BSE. Although the stock later recovered, it remained 0.78% lower at Rs 2,443.45 apiece. On the NSE, shares dipped 2% to Rs 2,412.05 apiece.
Controversy Impact: Reports of higher sugar content in Nestle’s products sold in less developed countries have contributed to the decline in Nestle India shares. Despite Nestle India’s statement regarding its efforts to reduce added sugars in baby food products, investor sentiment has been affected.
Company Response:
Efforts to Reduce Sugar: Nestle India stated that it has reduced added sugar in its baby food products by over 30% over the past five years. The company emphasized its commitment to nutritional quality and safety while innovating and reformulating products to reduce added sugars.
Product Assurance: Nestle India reassured consumers that its infant cereal products are manufactured to meet nutritional requirements and undergo rigorous quality checks. The company reiterated its dedication to nutritional quality and leveraging global research and development networks.
Conclusion: Nestle India shares continued to decline amidst reports of higher sugar content in the company’s infant milk products sold in less developed countries. Despite Nestle India’s efforts to address concerns and reduce added sugars in its baby food products, investor confidence remains subdued amid ongoing controversy.
Nestle India share price closed at 2437.70INR down −24.85 (−1.01%) in today’s session.
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